MPay’s daily chart
MPay’s share price
has to stay above the broken resistance to keep its upward bias intact.
The stock has likely completed a bottoming
pattern after the strong move yesterday. To recap, the stock has been trading
sideways for the past nine months, after seeing a sharp plunge in
April-May 2011. It reached the bottom in Oct 2011 and thereafter, the technical picture turned
increasingly positive, as shown by the higher lows. A change in trend should be
in store after the stock broke above the 9-month resistance level yesterday.
The “Long White” candle was accompanied by a surge in volume, which suggests firm buying interest. Another close above RM0.20 should confirm the
breakout and a purchase can be made at the current price, or preferably on
pullback towards the stop-loss level of
RM0.20. A more conservative trade may involve
using the one-month low of RM0.16 as a stop instead. The price target is RM0.27, the low of April
2011, and a strong move could see a test of the psychological RM0.30. A close
back below RM0.20 today may signal a possible false break, with a close below
RM0.16 as the confirmation. If this happens, the stock will likely
return to its sideways trend.
mTouche’s daily
chart
mTouche’s share price has to stay above the support level to
keep its upward bias intact.
This stock is one of the market outperformers in the past six months,
with the stock trading at its 4-year
high recently. Subsequently, the sharp rally gave way to sideways
consolidation, which is now extending into its fourth week.
We consider such a development as quite natural. The support level of
the sideways move is now more clearly defined after the firmer move
yesterday. The higher close nullified the negative bias of the “Long Black”
candle of 27 March, affirming the “Long Lower Shadow Doji” of 13 March. The
highest volume in two weeks also points to a return of buying support above the
round figure of RM0.40. Thus, positions can be initiated in anticipation of the
stock making a base above RM0.40, with a close below the support level
of RM0.40 as a possible stop loss. The price target is the recent high of
RM0.50 and a successful violation could see
the stock go as high as RM0.70, a measured move based on the Jan-Feb rally. A close below RM0.40 should see it trading
lower and may even spell the end of the uptrend as this will lead to the
completionof a “Double Top” formation. Strong support is expected at RM0.30, which
is also the high of Oct 2011.
Source: OSK188
No comments:
Post a Comment