Naim Indah’s daily
chart
Naim Indah may
rebound if it can hold above the support level. Late last
month, we highlighted the possibility of
this stock finding support
above the psychological RM0.50 but this failed to materialize. Our buying
prerequisite was not fulfilled and the stock continued to slide. However,
support is expected at above RM0.41, the low of early February, and the price
action yesterday suggests that support is holding, with buying likely to have
returned. As the stock formed a “Bullish
Engulfing” candle on improved volume, an upward continuation is still possible
and a
purchase can be made above Wednesday’s high of RM0.465, with a close
below RM0.41 as the stop loss. An aggressive trader may choose a close below yesterday’s low of
RM0.43 as the stop loss. Resistance remains at the previous
levels of RM0.60 and RM0.70, provided
that the psychological RM0.50 is broken convincingly. A successful violation of
both levels could see the stock testing the psychological RM1.00 mark. This
trade may not work out if the stop loss is triggered, and consecutive closes below RM0.41 should
confirm the weakness and may even spell the end of the 3-month uptrend.
Metronic’s daily
chart
Metronic’s share price may climb after forming the positive
candle yesterday. The stock was highlighted at the end of last month as it looked
likely to face selling pressure below RM0.25. This turned out to be true and
the stock fell subsequently. Nonetheless, it appears to have found support just below the expected level
of RM0.16, which is a 62% retracement of
the 5-day rally in mid-March. The “Bullish
Engulfing” candle formed yesterday shows
the failure of the “Black” candles of Tuesday and Wednesday to
elicit further selling. Therefore, a
rebound is likely to ensue and a
purchase can be made above the Wednesday-high of RM0.165, with a close below
RM0.15 as the stop loss.
The price target is the RM0.25 resistance level, with a successful
violation even seeing the stock hit the round figure of RM0.40, considering that there is no clear resistance
above the all-time intraday high of RM0.315.
This is provided that the minor
resistance at RM0.20 is broken convincingly. The upward
bias will be nullified should the stop loss be triggered, a development that
could even spell the end of the uptrend. Expect strong support at the
psychological RM0.10.
Source: OSK188
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