In this report, we are
revisiting the stocks that were
highlighted in our previous Daily Trading Stock reports. As 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 as
well as support and resistance levels.
Wijaya Baru:
Found support. Wijaya’s uptrend that started in June 2011 is still alive and it
may have found strong support last week.
To recap, we previously
highlighted the probability that the stock could
scale higher but it traded sideways instead. Nonetheless, the series of
higher lows is intact with the latest low at RM0.67. This level may turn out to
be the base before the stock resumes its ascent since the daily RSI is at
oversold levels, just above the low recorded in Sept 2011.
Thus, positions can be initiated at the current price in
anticipation of higher prices with a close below RM0.67 as the stop loss. An
aggressive trader may even exit on close below
the 2-day low of RM0.70. A
new up-leg should see the RM0.77 resistance
violated and the price target is RM1.00, a measured move based on the 2011
rally. A strong rally may even see the stock go as high as RM1.20, the high of late 2007. The upside bias is
nullified should the stop loss be triggered, after which look for the sideways
move to extend, with strong support at the Sept 2011 low of RM0.50.
Puncak Niaga: Positive consolidation. The stock’s rally
since the bottom in January is still good as the correction in February
retraced 62% of the rally, which is positive for the upward continuation based
on Fibonacci analysis. However, the resumption of the rally is still not in
sight as there were 2 false starts in March. A resumption of the uptrend will
likely be signaled by a close above RM1.43, which should see it moving to a
3-week high. Positions can be initiated if this happens with a close below
RM1.30 as the stop loss. An aggressive trader may exit below RM1.35, the low of
mid-March. The price target remains at RM1.75, with retraces 38% of the
2010-2011 decline and 62% of the May-Dec 2011 decline. A strong move may see
the test of RM2.00, which will claw back 50% of the 2010-2011 decline. A close
below RM1.30 will erase the upward bias and look for the correction to continue, a development
that will increase the possibility of a continuation of the downtrend since the
2008 high.
N2N Connect: At
3-year high. This stock was highlighted in March for its likelihood of scaling
higher after it printed a 4-year high above the psychological RM0.50. However,
it could not hold above this level and a
correction ensued. Nonetheless, the upside bias is still intact as the stop
loss of RM0.41 was not triggered, and it even found support at a higher level
of RM0.425. The stock is now back above the psychological level and positions
can be maintained as long as it does not close below RM0.50. The stop loss is
now a close below RM0.425. The uptrend will be confirmed on a close above the Marchhigh of RM0.52 and if so, look for
the stock to reach RM0.80 – a measured move based on the 3-year sideways move.
A strong move could even see the test of
the psychological RM1.00. The
trade will not work out should the stop loss
be triggered, after which sideways trade may follow.
SILK Holdings: Breakout attempt. The
stock’s attempt to break above
the 5-year resistance of RM0.50 failed early last month. This had led to a
subsequent correction but the upward trend since Sept 2011 is still intact, as
seen from the higher lows. In fact, the firm close on Tuesday should confirm
the formation of a bottom last week. The new low above the stop loss of
RM0.40, as indicated in
our previous report, is positive
for the uptrend. Thus, an upward continuation is still expected and
purchases can be made at the current price with a close below RM0.40 as the
stop loss. Resistance remains at the psychological RM0.50 and a successful
violation could see the stock at RM0.85,
a measured move based on the sideways trade of the past 5 years. The trade may
not work out if the stock closes below RM0.40, after which it is likely to return
to its sideways trade. Expect support at RM0.30 and RM0.20.
Source: OSK188
No comments:
Post a Comment