Thursday, 15 March 2012

DAILY TRADING STOCKS: Dataprep Holdings, Asia Media


Dataprep’s daily chart
Dataprep shares  may  climb  after making a short term bottom yesterday. The stock, which we featured previously,  has breached our target of RM0.425 but finally succumbed to selling pressure just below  the  psychological RM0.50.  The stock went through a correction and found support at RM0.35, which  represents a 50% retracement of the Sep 2011-Feb 2012 rally. A short term base may have been completed after the stock closed  at  the highest in 12 days, and above the high of the prior 4 days.  The highest volume since mid-Feb also suggests the return of buying support. As such, a purchase can be made above RM0.38, or if possible, on pullback towards the stop loss of RM0.35. The price target is  the Nov 2011 high of RM0.425 while a strong move could see a retest of RM0.50. A successful violation of RM0.50 should see the stock trading higher while a measured move based on the prior 5-month rally is RM0.65. However, look for the price to  slip  if the stop loss is triggered. Supports are expected at  the  psychological RM0.30 and late-Nov 2011 low of RM0.25.

Asia Media’s daily chart
Asia Media’s share price may have found a bottom yesterday after forming a “Reversal” candle. The stock, which we have previously featured, breached our second target of  RM0.40 but a false break above the prior all-time high of RM0.425 brought a spate of selling. The  selling  was intense as it even covered the gap of early Jan at RM0.30, a retracement of more than 62% of the Sep 2011-Feb 2012 rally, and just above the 200-day MAV line. However, the selling may have ended yesterday after the stock formed the positive “Hammer” candle which usually appears at  the end of a selldown. Volume was the highest in 3 days, possibly due to a return  of buying. Buying is confirmed should  the stock close above the “Hammer” high, also the 2-day high, of RM0.32 while a close below the “Hammer” low of RM0.30 can be employed as  a  stop loss. Given the sharp fall,  the  modest targets  at  RM0.375 and RM0.40 are set, both Fibonacci levels of the past 7 days of the down move. However, another close above RM0.425 should see the resumption of  the  5-month rally.  Meanwhile, a close below RM0.30 should signal the end of the uptrend, with supports seen at RM0.275 and RM0.25.

Source: OSK188

No comments:

Post a Comment