N2N’s daily chart
N2N’s share price may
trade higher after closing above the significant resistance level
yesterday. The stock has been consolidating sideways between RM0.20 and RM0.50
for more than 3 years. But the trend
is likely to
change after the stock closed above the psychological RM0.50
yesterday. The breakout was on significant
volume which is the highest in 2 years and thus, reducing the probability of a
false breakout. A close above RM0.50 today will confirm the breakout. Thus,
purchases can be made above RM0.50 with a stop on close below this week’s low
of RM0.41, also the uncovered gap of 29 Feb. A more aggressive trade may even
exit on a close back below RM0.50. The price target is RM0.80, a measured move
based on the 3-year sideways move and a strong move could even see the price
testing the psychological RM1.00. The trade will not work out should the stop
loss be triggered and when this happens, the stock is likely to
trade sideways instead.
Silk’s daily chart
Silk’s share price may trade higher after the strong move yesterday. The stock has
been rallying strongly since making a
low in Sept 2011. It is now trading at its 2-year high and testing the 5-year
resistance level of RM0.50. The strong move on a “Long White” candle yesterday
suggests that the stock may have enough momentum to break the resistance level.
Volume was also at the highest in 2 years, suggesting sustained
buying interest. As such, purchases can be made, if possible, on pullback
towards the stoploss level of RM0.40,
the low of this week. It is preferable to wait for a close above RM0.50 before entering. A close above RM0.50 today
will be the highest close in more than 5 years. An aggressive trade may choose
to exit on a close back below RM0.50, as
the possibility of a false breakout cannot be ruled out. The price
target is RM0.85, a measured move based on the sideways trade of the past 5
years. The trade may not work out if the
stock closes below RM0.40, which suggests that
it is likely
to see a return of the sideways trend. Expect support at
RM0.30 and RM0.20.
Source: OSK188
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