In December last year, we advised traders to accumulate
R&A shares while the stock was building a new support floor at the RM0.115
level, with high volumes seen throughout the month. Nevertheless, the sideways
trend has yet to change into an uptrend thus far, and it is now at risk of
breaking the RM0.115 crucial support floor instead. As the sign of price weakness,
which started this Monday, could
indicate a breakdown and our RM0.115 cut-loss level has also been triggered, we
suggest selling R&A shares now. The RM0.08 and RM0.06 levels are the
downside targets.
In Dec last year, we advised traders to start accumulating
R&A shares as the stock was constructing a new floor at above the RM0.115
level, with high volumes seen throughout the month. It did look like the
base-building was very constructive. Moreover, it was a low risk trade at that
time considering the stock was trading just right above our RM0.115 cut-loss
point. However, the sideways trend that started since Sept last year has yet to
change into a new uptrend, and it is now at risk of violating the RM0.115
support floor instead. The stock has already closed below our RM0.115 cut-loss
level yesterday. As the stock is now trading below the 6-month old support
floor and our cut-loss level has been triggered, we advise traders to sell the stock.
Should the RM0.115 level be violated in the near future, this would also imply
that the uptrend that started since March 2009 could be over too. We are eyeing
the RM0.08 and RM0.06 levels as the downside targets. The stock will be in a
safe position if it manages to rebound back above the RM0.115 level by end of
the week. The RM0.115 level is now the immediate resistance, followed by the
RM0.13 level.
Source: OSK188
No comments:
Post a Comment