Judging on the increasing volume seen this week, it looks
like Konsortium is trying hard to create a major breakout from the 200-week MAV
line at the RM0.18 level, after creating a strong foundation at the RM0.12
level since January last year. We advise traders to buy on a breakout at above
the RM0.19 level, with the RM0.27 tough resistance level being our upside
target. They should consider cutting loss should the share price close below
the RM0.18 level.
Konsortium’s share price has been stabilizing at above the
RM0.12 level for about 15 months since Jan last year. As a result, a strong
foundation has already been constructed
at this level. Now, it seems that the stock is trying to end the consolidation
phase and it is indeed trying hard, judging
from the increasing volume seen this week. We believe a break above the
200-week MAV line would signal the end of its almost 15-month consolidation
phase.
Judging from the breakout based on the weekly chart, the
200-week MAV line is only considered violated if the stock could close above
this moving average line by the end of this week. The 200-week MAV line is now
situated at the RM0.18 level.
Hence, to be safe, we advise traders to accumulate its
shares at above the RM0.19 level and cut their losses should its share price
close below the 200-week MAV line. We are eyeing the RM0.27 tough resistance as
the upside target. In 2009 and 2010,
this level was tested twice but failed to be violated.
For now, the 200-week MAV line remains a resistance level
for the stock. The next resistance can be found at the RM0.20 level. To the
downside, look for an immediate support at this week’s opening level of RM0.15
level, followed by the strong foundation level of RM0.12.
Source: OSK188
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