The stock is currently consolidating the climb to the high of RM2.96, and the stock would likely find support at the 42-level (currently at 54.2) on the 14D RSI, which we believe it represents a good buying level.
On the weekly chart, the stock is finding support at the 15W SMA and should it fail, the stock would find support at 30W SMA. In the unlikely event of a crash, we note there is strong support at RM1.75. Given heighten interest in the O&G sector arising from the factors as mentioned above, we believe any retracement is a good opportunity to buy. We note that even in major crisis of a possible nuclear meltdown in Japan, there is not an avalanche of sellers. This would mean that the retracement (if any) would be shallow. And on the flip side, any positive corporate development would quickly lead to a re-rating of the stock.
We suggest that one hold a small position for now and further adds to the position when the price slides down. If bullish action is observed, execute a BUY immediately.
On the weekly chart, the stock is finding support at the 15W SMA and should it fail, the stock would find support at 30W SMA. In the unlikely event of a crash, we note there is strong support at RM1.75. Given heighten interest in the O&G sector arising from the factors as mentioned above, we believe any retracement is a good opportunity to buy. We note that even in major crisis of a possible nuclear meltdown in Japan, there is not an avalanche of sellers. This would mean that the retracement (if any) would be shallow. And on the flip side, any positive corporate development would quickly lead to a re-rating of the stock.
We suggest that one hold a small position for now and further adds to the position when the price slides down. If bullish action is observed, execute a BUY immediately.
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