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Tuesday, October 25, 2011

YTLLAND - Betting on a Major Breakout (ext.OSK)

A rumour has been going around in the market that a few YTL companies may be involved in a corporate exercise. Yesterday, besides YTL Land, YTL Corp was also among the most actively traded stocks. YTL Land is now consolidating the sharp rebound which started from the RM0.755 low recorded in September. Although its recent strong rebound is still perceived as a bearish rebound, traders can consider accumulating the shares during the current consolidation phase and bet on a major breakout from the downtrend line extending all the way from the peak recorded early this year.

Traders are advised to accumulate the shares at above the RM1.12 level and cut loss at below RM1.06. A dip below the RM1.06 level will likely suggest that the major downtrend line will not be broken this time. However, should the downtrend line be violated and subsequently trigger a major breakout signal, look for the major resistance of RM1.53 as the upside target. Prior to reaching the RM1.53 level, look for immediate resistance at the RM1.30 level. And, at above the RM1.53 level, the next resistance is detected at RM1.67.

(Chart posted with courtesy of ChartNexus)

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