Wednesday, 21 March 2012

HOT STOCK: Top Volume Stocks- Nagamas International, Perisai Petroleum & Bertam Alliance


In this report, we revisit the stocks  that we highlighted in our previous Daily Trading Stock report. As the these stocks have continued to garner market interest, we are examining their current technical picture and identifying the new levels to be mindful of, including their price targets and support as well as resistance levels. 

Nagamas International: Testing resistance. We highlighted this stock in mid-February for its potential price rally. Although its share price did not appreciate immediately, it has been consolidation sideways, but with a hint of upward bias. It has been making higher lows since early January, the latest being the March low of RM0.70, while the consistently high volume suggests continued buying interest. The resistance level remains at RM0.75, and a close above it today should confirm the breakout. A position can be maintained at the current level, with a tighter stop loss on a close below RM0.70. A measured move based on the early-2011 rally could see the stock go as high as RM1.30, provided that the 2011-psychological high of RM0.90 is convincingly broken.

Perisai Petroleum: Still consolidating. We featured the stock late last month in view of its potential to make a short-term top.  Since then, the stock  has peaked and  gone  into a correction. The correction, which can be classified as a form of sideways consolidation, is unfolding just above our first target of RM0.90. The 2011-high of RM0.90 has now turned into a support as the price has bounced off this level three times in the past one month. Therefore, this could be the base for the stock’s next upward move. A speculative purchase can be made above RM0.90, while a close above RM0.94 will increase the possibility of an upward continuation, with a close above RM1.00 as confirmation. A measured move based on the DecFeb rally could see the price scale as high as RM1.30. However, should RM0.90 be violated for 2 consecutive days, expect strong support at RM0.80, the confluence of Fibonacci levels based on the rally since the September low.

Bertam Alliance: Finding support. We highlighted the possibility of the stock making a short-term top last month and the stock fell accordingly. Nonetheless, its uptrend since the low of Dec 2011 is still intact as the 50-day MAV line continued to rise. As anticipated, the stock also found support at the RM0.70 level, which is a 50% retracement of the Dec-Feb rally. This level should be the higher low that forms the base for the next up-leg, as confirmed by the “Long White” candles of 9 and 16 March. As such, a position can be maintained as long as the stock stays above RM0.70. The stock has now violated theRM0.80 resistance level, which  should  now  see it testing  the  recent high of RM0.95.  A close above RM0.95 could see  it reach as high as RM1.20, a measured move based on the 2010-2011 rally.

Source: OSK188

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