Hunting a Penny – Dataprp (0.32)

Dataprep’s price broke through several barriers after news that its subsidiary has secured a RM34.99 million contract from Syarikat Prasarana Negara Bhd to implement a cashless bus ticketing system for Rapid KL Buses.

Firstly, price broke through its all time resistance at 0.305 and closed at its day-high at 0.32 with volume increased significantly today. The price also broke through its 20MA, 100MA and 200MA in one shot. This is a very bullish signal that warrants a solid support for selling pressure, if any.

Secondly, Dataprep’s price has been squeezed inside the Bollinger Bands for quite a long time and staged a break out today after price surged over 0.315.

Thirdly, all oscillators of MACD, Stochastic and W%R are pointing north now and the Histogram of MACD printed a green bar after five red bars.

These entire scenarios warrant a further hike tomorrow.

Resistances are 0.33, 0.35, 0.365 and 0.37. Strong support is around 0.31-0.315. Stop loss should be applied if price fell below 0.305.

Analyzed and Written by Smartbiz (Chart extracted from ChartNexus. Click to view)