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
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