Tuesday 15 May 2012

DAILY TRADING STOCKS: UMW, APM, KNM, IGB, ARMADA, MBSB, YTLLAND, WCT



UMW may trade higher after closing firmer yesterday. Purchases can be made if  it  closes above  the  psychological RM8.00 with a close below  the  2-week low of RM7.87 as  the  stop loss. The price target is RM8.40, followed by RM8.75. A failure to break RM8.00 may lead to a correction with a close below RM7.87 as  the confirmation. Expect strong support at RM7.45.


Look for APM to climb higher after it closed at the highest level in 7 months. Purchases can be made at the current level or on pullback towards the stop loss of RM4.70. A conservative trade may choose RM4.50 as  the  stop loss instead.  The price target is RM5.00 and RM5.35, Fibonacci levels of the 2011 decline. A close below RM4.50 will erase the upward bias and  if this happens, the stock should trade lower. Strong support is at RM4.20.

Downward pressure is expected to weigh on KNM’s share price as long as it is below RM0.83. Thus, liquidation can be made below this level. Support  is expected at  the  round figure of RM0.70 and RM0.60. At the moment, only a close back above RM0.83 may indicate a return of buying. It  also  requires a close above  the resistance level of RM0.90 to confirm the upward move.


IGB may trade higher after the firmer close yesterday. Purchases can be made on close above yesterday’s high of RM2.80 with a stop loss on close below the 3-month low of RM2.70. The price target is the  2007-high of RM3.10, provided that recent high of RM2.90 is broken. A correction may set in should the stop loss  be triggered. Support lies at RM2.50 and RM2.35.


Bumi Armada is set to  experience selling that started in early May after closing below the psychological RM4.00. Liquidation can be undertaken below this level. Support  is expected at RM3.85, followed by  the  Fibonacci retracements of  the  Sept-May rally at RM3.73 and RM3.55. A close above RM4.06 will nullify the weak bias and a rebound may follow.

MBSB may enter into a short-term correction should it violate the RM2.13 support level. Positions can be liquidated if  this happens and support  is expected at  the  psychological RM2.00, followed by the prior resistance of RM1.80. A failure to break this support level may induce a return of buying, but this is only confirmed on a close above yesterday’s high of RM2.27. Resistance remains at RM2.40.


YTL land is likely to trade lower should it close below the RM1.00 psychological level. Liquidation can be undertaken if  this happens. Support is expected at the Oct 2011-high of RM0.89, followed by the Sept 2011-low of RM0.75. Buying may return  if the support level holds but buying is only confirmed on a close above RM1.09. Expect strong resistance at RM1.30.


WCT’s downward move is likely to continue after it closed below the  3-month low of RM2.34 yesterday. Liqidation can be undertaken if the price falls below this level and support is expected at the Fibonacci retracements of  the Sept-Feb rally at RM2.20 and RM2.06. Resistance lies at the recent high of RM2.50 and buying is not expected to return until this level is violated.


Source: OSK188

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