DAILY TRADING STOCKS: Time Engineering, DVM Technology

TIME’s daily chart

TIME may  trade higher  if it  can  hold above the  gap created yesterday.  The stock has been  in consolidation for the past  2 months, which came after the rally of Dec-Feb. The correction has not dented the stock’s uptrend since Sep 2011 as the recent low of RM0.325 is a correction of just about 62% of the prior rally, deemed positive based on Fibonacci analysis.  Yesterday’s firm close may signal the continuation of its uptrend, as shown by the  “Long White” candle. Sentiment is upbeat as the stock gapped above the 50-day MAV line.  Thus, a  purchase can be made at  the current price, with a stop loss on a close below yesterday’s low of RM0.35. A more conservative trade may  be to set  RM0.325 as  a  stop instead, while a measured move based on  the Dec-Feb rally could see  the stock  testing the psychological RM0.50, provided that RM0.425 resistance level is  violated convincingly. The upside bias will be nullified should the  gap  be covered and is confirmed by a close below RM0.325, which  may even signal the end of the uptrend. Expect strong support at RM0.28, the gap of early Jan.

DVM’s daily chart

DVM share price may climb after breaking above the short-term resistance level. This stock has been climbing gradually since the broad market rebound in Sept 2011.  This was despite the price collapse in Aug-Sep 2011. A clear resistance is seen  at RM0.11, which the multiple tests in the past 5 months failed to break. This changed yesterday after the strong close above the level in a breakout which  looks good as the  high volume accompanying  the “Long White” candle suggests firm buying interest. Thus, a purchase can be made at the current price, or  if possible, on a pullback towards the stop loss of RM0.11, which  was also yesterday’s low. The first target is the resistance level of RM0.17, which halted price several times in Aug 2011. A strong move could even see the test of RM0.22, the high of late-Aug. However, the upward bias is likely to be nullified on a close back below RM0.11,  which is a  signal of  a false breakout. A close below the  Mar low of RM0.09 should confirm the weakness and may even spell the end of the stock’s 5-month rally.

Source: OSK188