HAPSENG - A Major Breakout (OSK)

The EdgeWeekly carried a few articles on Hap Seng in September but trading interest in the stock only started to pick up in the last two sessions of last week. Its shares changed hands rapidly after it violated the nine-month old downtrend line. The construction of a new support floor coupled with the violation of the downtrend line suggests a shift in trend. As last Friday’s price action signals a major breakout, traders could consider accumulating the shares at above the RM1.40 level. We are eyeing the RM1.70-RM1.75 area as the upside target while a cut-loss point is pegged at below the RM1.36 level.