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Friday, October 21, 2011

IOI Corp (OSK)

IOI may resume its upwards movement if it can hold above the broken resistance level in the next couple of days. IOI is one of the weaker blue chip stocks. After peaking in January, it violated the important February low earlier compared to the benchmark index. Then, it made a series of lower highs which indicates the weak trend. However, it rebounded strongly early this month and the subsequent correction in the past week still sees the stock above the broken resistance of RM4.84. Purchase can be made just above RM4.84 with a close below it as the stop. Daily closes above RM5.00 should confirm the buying strength but it has to break above recent high of RM5.15 to confirm the continuation of the rally. A measured move target is RM5.75, based on the early-October rally, which is also the high of March. However, a close below RM4.84 could see the price testing the September low of RM4.25.

(Chart posted with courtesy of ChartNexus)

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