Tuesday, 20 March 2012

DAILY TRADING STOCKS: YTL, I-Power


YTL’s daily chart
YTL may  rise further  if it can stay above  the broken resistance level.  We highlighted  this stock  late last month  in view of its potential to scale higher, and it has moved  favourably since. It appears to  have  hit  a new  resistance after breaking above the 5-year high of RM1.75 as it has been moving sideways for the past 3 weeks.  Nonetheless, the uptrend is still alive as the stock closed back above RM1.75, ignoring the weak bias from the “Black Candle” of last Friday. Therefore,  the uptrend  is likely  to continue  and  a purchase can be made above RM1.75.  A more conservative trade may be to wait for a close above RM1.80 before entering. A close below the consolidation low of RM1.65 can be employed as a stop loss, while a tighter stop may  be to  opt for yesterday’s low of RM1.70 instead. The price target remains at RM2.10, which is the 6-month “Ascending Triangle” measured move target, although resistance is also expected at  the  psychological RM2.00. A close below RM1.65 will nullify the upward bias, and if this happens, look for the stock to trade sideways, with strong support expected at RM1.55 and RM1.42.

I-Power’s daily chart
I-Power may go up if it can  stay above the  broken  short-term resistance level. The broad market rebound in 4Q last year gave IPower  a new lease of life. The stock  started rallying  in Nov 2011, making a series of higher lows along the way. It even set a new 52-week high  last week. The breakout occurred on high volume, the highest in more than a year,  which  suggests firm buying support. The stock pulled back a little yesterday but its upward bias has not dissipated as it closed right at the resistance at RM0.065. A higher close today should confirm the continuation of the rally, and a position can be initiated if  this happens. A more aggressive trade may be to enter now in anticipation of the price climbing further. A close below RM0.045, the latest in the series of higher lows, can be employed as  a  stop loss.  The price target is the psychological RM0.10, with a strong move possibly testing the 2008 and 2009 low of RM0.12. The stock’s upside bias will be nullified should the stop loss  be triggered, which could even signal the end of  its 5-month rally.I-Power may go up if it can  stay above the  broken  short-term resistance level. The broad market rebound in 4Q last year gave IPower  a new lease of life. The stock  started rallying  in Nov 2011, making a series of higher lows along the way. It even set a new 52-week high  last week. The breakout occurred on high volume, the highest in more than a year,  which  suggests firm buying support. The stock pulled back a little yesterday but its upward bias has not dissipated as it closed right at the resistance at RM0.065. A higher close today should confirm the continuation of the rally, and a position can be initiated if  this happens. A more aggressive trade may be to enter now in anticipation of the price climbing further. A close below RM0.045, the latest in the series of higher lows, can be employed as  a  stop loss.  The price target is the psychological RM0.10, with a strong move possibly testing the 2008 and 2009 low of RM0.12. The stock’s upside bias will be nullified should the stop loss  be triggered, which could even signal the end of  its 5-month rally.

Source: OSK188

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