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.
JCY International:
Testing resistance. JCY has moved favourably since it was highlighted in late
March. The higher volume –though relatively less than the volume a few months
back – in the past few days confirms the return of buying interest. The stock
is now testing the RM1.40 level, which it failed to stay above in early February. Selling
pressure is seen again, as shown by the “Upper Shadow” on Monday and the
“Bearish Engulfing” candle that formed yesterday. Thus, the level has to be
violated convincingly to keep the rally going. Resistance is still expected at
RM1.50 and RM1.60, as mentioned in our previous
report. A failure to break RM1.40 increases the possibility of a correction to
the Oct-Feb rally. The 50-day MAV line, now at RM1.23, should act as a support
just like it did in the past month. The confirmation of a correction will comeupon
the violation of strong support at the March-low of RM1.07.
Hibiscus: Testing
psychological level. The stock confirmed the continuation of the uptrend last week after closing above the
RM1.84 resistance level, as identified in our previous report. However, the
price reaction on Monday shows that sellers are not letting up either. This is
shown by the “Upper Shadow” of the “Long White” of last Friday, which is
followed by Monday’s black candle. Attempts to close above RM2.00 yesterday
also failed. Therefore, the stock has to close back above RM2.00 to reaffirm the
uptrend with a close above RM2.20 as the
confirmation. A failure to close above
RM2.00 in the coming days, if not weeks, may signal at least the start of a
correction. This should be confirmed by a close below Monday’s low of RM1.92
and a close below RM1.68 is needed to fully erase the upside bias of the 13
April “Long White” candle. Given the firm 7-month rally, support is expected at
RM1.50, the low of February and RM1.25, the high of January.
Focus Dynamics: Rally continuation. This stock was highlighted several times previously and it continues to
move favourably. After peaking just below the target of RM0.25, the stock went
into a month-long consolidation. The firm move yesterday, with strong buying
interest as suggested by the high volume, likely signals the start of a new
up-leg. Thus, purchases can be made above RM0.16 and a measured move based
on the Dec-Feb rally could see the stock at RM0.30, which tests the high of
2009. This is provided that the resistance levels at the psychological RM0.20
and RM0.25 – a major support level in 2007 – are violated convincingly. A
failure to break RM0.20 indicates at least the start of a correction with a close
below RM0.16 as the confirmation. Strong
support is at RM0.125, the violation of
which may signal the end of the rally.
Pos Malaysia:
Tight consolidation. The stock was highlighted in early March for its
likelihood of finding a bottom above the 100-day MAV line. However, the
expected rebound did not happen and the stock traded sideways instead. It is
now clear that the 200-day MAV line, just above the 1-month high of RM2.76, is
weighing on the index while the 100-day MAV line, now at RM2.66, provides
support. Thus, look for the stock to move in the direction of a breakout. An upward breakout could see it at
RM3.20, a measured move based on the
Dec-Jan rally. A downward breakdown will extend the 3-month correction, with
strong support expected at the
December-low of RM2.45, the violation of which may see the resumption of the
downtrend since April 2011.
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