Thursday, 7 March 2013
Highlights / Stock Picks of the Day - UOA Development ("UOADEV") – Not Rated
Recall that on Tuesday, we had UOADEV as our technical stock pick for the day after the share price broke out of the triangle resistance line at RM1.88. Since then, the share price has risen 3.1% or 6 sen, where it is currently in the midst of retesting the RM1.94 August high. This resistance level is pivotal for the stock, and we expect to see some degrees of resistance. Nevertheless, the indicators are firmly bullish (MACD, Stochastic, RSI and SMAs are all supportive of a move higher), and chances are that this level would be taken out very soon. Should the aforementioned level be breached, we reckon that the share price could potentially make its way towards RM2.08 and possibly even RM2.16. No action should be taken until the breakout occurs, though we suggest that traders keep a keen lookout for the anticipated buy signal.