In this report, we are
revisiting the stocks that were
highlighted in our previous Daily Trading Stock reports. As these stocks
have continued to garner market
interest, we are examining their current technical picture and
identifying the new levels to be mindful of, including their price targets as
well as support and resistance levels.
Ariantec Global:
Testing another resistance. The stock had earlier faced strong selling pressure
at RM0.20, as signalled by the “Upper Shadow” of the 18-19 April candles. The
fact that high volumes have accompanied the candles gives rise to the possibility
of distribution at that level. However, the stock managed to overcome this
bearish bias last Friday, where it closed
convincingly above RM0.20. As expected,
the surge was soon met with resistance
at last week’s intraday high of RM0.25. Thus, this level has to be violated to
keep the rally intact and this could see the stock testing the round figure of RM0.30.
A failure to break RM0.25 may see a return in selling, where a close below the
2-day low of RM0.225 serves as the confirmation. Liquidation can be made if
this happens and support is expected at RM0.20, RM0.175 and then RM0.135. A close
below RM0.135 may signal the end of the two-month rally.
Metronic Global: Struggling at resistance. The stock was highlighted in early April for its likelihood of bottoming at the RM0.15 level. The stock has moved
favorably, with the formation of white
candles on 17-18 April. As anticipated, it soon met with resistance at the
round figure of RM0.20. It also failed
to close above this level despite 6 attempts and selling pressure is
illustrated by the “Upper Shadow” of the last few candles. Thus, it has to
close above RM0.20 to keep the rally going. The price target remains at the
psychological RM0.25 and thereafter, the all-time intraday high of RM0.315. A
failure to break above RM0.20 could see sellers taking control, with a close
below the 3-day low of RM0.185 as the confirmation. The RM0.185 level can also
be employed as the stop loss for exiting positions. Strong support is at
RM0.15, a violation of which likely spells the end of the 3-month rally.
Focus Dynamics:
Uptrend in jeopardy. This stock was highlighted early last week for the
possibility of a rally continuation, following the highest close in a
month. This close indicated that a higher low was formed at
RM0.16. However, buying interest was short lived as the expected resistance of
RM0.20 proved hard to break. The “Upper
Shadow” of 17-18 April, with closed below RM0.20, is a good indicator of the
selling pressure. Furthermore, the high volume that accompanied the candles
also suggests distribution. Thus, the possibility of an upward continuation has
reduced significantly and the stock is likely to trade lower. A close below
RM0.16 should confirm the weakness and
if this happens, traders should consider liquidating their positions.
Strong support is at RM0.13, the violation of which may signal the end of the
rally.
JoTech Holdings:
Tight consolidation. The stock is still on a longer-term uptrend and an upward
continuation was expected in late January. However, this did not materialize
and the stock traded sideways. Despite this, the upward trend is still intact and
in fact, the stock was making a higher base for a new up-leg at RM0.14. The
expected upward continuation may happen soon as the stock was inching higher in
the past month. It was accompanied by higher volume too, which suggests firm
buying interest. Thus, an upward continuation is expected as long as it
stays above RM0.14, and purchases can be made with a close below as the
stop loss. A conservative trade may wait
for a consecutive close above RM0.155 before entering. The price target
is RM0.215, a measured move based on the year-long sideways consolidation
range, provided that the 2011-high resistance at the RM0.17 level is broken.
The trade may not work out should the stop be triggered and strong support is
expected at RM0.115.
Source: OSK188
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