Ariantec’s daily chart
Ariantec’s may trade lower after the decline yesterday. The
stock is on a strong rally and broke many resistance levels along the way. It
even managed to close above RM0.25 on Wednesday, after the failed tests early
in the week. However, the trend may take a turn yesterday as sellers have
emerged. It formed a “Bearish Engulfing” candle, covering the body of the prior 3 candles. The close below the
prior 2-day low also adds to the negative bias, increasing the potency
of the false breakout of RM0.25. Thus, a correction is likely to follow, and
aggressive traders may exit on rebound towards RM0.25. A conservative trader may wait until the stock closes below Monday’s low of RM0.225 before
liquidating. Support is expected at
RM0.20, RM0.175 and then RM0.135, where a close below RM0.135 may signal the
end of the two-month rally. The weak
bias will be neutralized should the stock close above RM0.25 and this should
lead to a continuation of the rally. If so, look for the stock to test the
psychological level of RM0.30.
Keladi’s daily
chart
Keladi’s share price
may trade higher if it violates the psychological level. The stock has been rallying firmly, together with the broad market since
hitting the low of Sept 2011. Nonetheless,
it spent the last 3 months consolidating the trend. The uptrend is still
apparent, from the series of higher lows in the past 7 months. The latest low should mark a strong support
and form a good base for the next leg up. However, a continuation of the uptrend is only confirmed on a sustained
close above RM0.20. That will see the stock closing the highest in four years.
Purchases can be made if this happens
with a stop loss on close below RM0.19.
A conservative trade may wait until it closes above the past year intraday-high
of RM0.21 before entering. The price
target is RM0.25, based on the 3-year consolidation width, and a strong move
may even see the test of psychological RM0.30. A close below RM0.19 will
invalidate the trade, but do keep a close watch on the stock, as an attempt to
test the resistance level could happen again in the future.
Source: OSK188
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