On 20 Feb 2012, we advised traders to accumulate Winsun’s
shares after the stock violated the RM0.105-RM0.13 consolidation range.
Subsequently on 5 March 2012, its share price
had climbed to as high as RM0.20, which is just a whisker away from our
RM0.21 target. Nevertheless, the stock violated its steep uptrend the next day,
which was then followed by a sharp retracement. Coincidentally, Winsun’s share
price has started to consolidate at around the previous consolidation range
of RM0.105-RM0.13 and this
presents another trading opportunity. Traders are advised to accumulate shares
at prices within the current consolidation range of RM0.11-RM0.135. The upside
target is pegged at the RM0.18 level this time, with the cut-loss level at the
RM0.11 support floor.
On 20 Feb 2012, we advised traders to accumulate Winsun’s
shares after the stock violated the
RM0.105–RM0.13 consolidation range. Its share price had appreciated as
expected, following the breakout and eventually reached as high as RM0.20, which
is just shy of our RM0.21 price target.
Nevertheless, the steep uptrend line was quickly violated on
6 March 2012 and this had caused its share price to retrace sharply. Meanwhile, Winsun’s share
price has now started to stabilize at above the 61.8% Fibonacci retracement
point of the Jan-Feb sharp rally. For
the last three weeks, the stock has been trending sideways within the
range of RM0.11–RM0.135. As
mentioned earlier, the current consolidation range coincides with the previous
consolidation range of RM0.105-RM0.13.
As the stock has started to stabilize right above the 61.8%
Fibonacci retracement level and an obvious consolidation zone could also be
identified, we see another trading opportunity being presented. Hence, we advise traders to
accumulate shares at prices between RM0.11 and RM0.135. This time, we are
eyeing the RM0.18 level as the upside target, but advise traders to cut losses
should the RM0.11 support floor be taken out.
The RM0.135 resistance line of the consolidation phase is
now the immediate resistance. The RM0.15 level is another level to be
challenged, prior to reaching our RM0.18 price target. To the downside, look
for RM0.11 as the immediate crucial support. The next support lies at the
RM0.10 psychological mark.
Source: OSK188
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