Tebrau Teguh: Upward bias stays intact at above RM0.67. This is one of the penny stocks that has continued to attract market interest as it has consistently seen good volume since the start of its rebound in September. The stock’s reluctance to make a new low at the end of September was an initial sign of strength, and in its subsequent rebound, it has reclaimed exactly 50% of its Jan-Sep decline. The stock’s series of lower highs since January is still intact as selling resumed on Monday, preceded by a gap-down that is sill uncovered, which also broke the 2?month uptrend. Nonetheless, the stock found support right at the 50% retracement of Sep-Nov rally on Tuesday, where it formed a “Long White?candle when it hit the low of RM0.67. Despite having broken the trend line, the stock’s upward bias is still intact if its price can stay above RM0.67, which is coincidently where the 50-day and 100-day MAV lines lie. The closure of gap at RM0.73 should validate the return of buying while a close above the Nov high of RM0.775 will confirm the continuation of its rally. The price target is the year high of RM1.00 while the supports are at RM0.64 and the recent low of RM0.56.
KUB Malaysia: Technical landscape to improve once RM0.73 is violated. This is another penny stock that has garnered a lot of volume in the past two months. Similar to Tebrau, the rebound failed to break the series of lower highs since Jan but this may change if the stock can break above the recent high of RM0.73. This probability has increased significantly judging from the strong rebound in Oct, during which the stock regained more than 62% of its Jun-Sep decline. However, the stock has to first find support as it has broken below the 5-week consolidation low of RM0.675. Supports are situated at this week low of RM0.655 and the psychological levels at RM0.60 and RM0.50. A close back above RM0.675 should result from firm buying, with a close above RM0.73 as confirmation. The price target is also the psychological RM1.00 level, not too far from year high of RM0.96.
Equine Capital: Touching a 2-year high. This is another penny stock that has drawn tremendous market interest. It even printed an all-time high in November, with its strength shown by the higher lows made in Aug/Sep compared to March. But similar to the other stocks, the selling which returned on Monday was preceded by a gap. Therefore, the stock has to find support before it can launch another leg up. Obvious support lies at RM0.55, the gap of 11 Nov, followed by RM0.515 – which is the high of Sept that also represents a 62% retracement of the Sept-Nov rally. Resistance is at Monday’s gap at around RM0.60 and thereafter, the year’s intraday high of RM0.65. A break at RM0.65 will confirm the second leg of the rally and a strong upward move can be expected. That will see the share price hit a 2-year high while a break above the 4-year high of RM0.75 could see an attempt to cover the 2008 gap of RM1.10 and RM1.35.
RCE Capital: Burst of buying. The stock has been trending lower since the start of 2009, as illustrated by the series of lower highs. However, this may change if the stock can sustain the buying support that kicked in sometime early Oct. The volume spike on 7 Oct signaled the start of buying, with the gap indicating a change in sentiment, which was followed by second spurt of buying on 17 Nov. The share price has not responded well to the second burst of buying but a return of buying is still possible as long as the share price stays above the Nov low of RM0.46. A position can be taken above RM0.46, and a close above the Oct high of RM0.51 should confirm the return of buying and also see the violation of the 200-day MAV line. The stock may attempt to cover the gap of Dec 2010 at RM0.63. Minor resistance is expected at RM0.56, the measured move of the Oct rally and also the high of March and July, while a close below RM0.465, however, should see a continuation of selling, with a confirmation on a new low below RM0.40.
KUB Malaysia: Technical landscape to improve once RM0.73 is violated. This is another penny stock that has garnered a lot of volume in the past two months. Similar to Tebrau, the rebound failed to break the series of lower highs since Jan but this may change if the stock can break above the recent high of RM0.73. This probability has increased significantly judging from the strong rebound in Oct, during which the stock regained more than 62% of its Jun-Sep decline. However, the stock has to first find support as it has broken below the 5-week consolidation low of RM0.675. Supports are situated at this week low of RM0.655 and the psychological levels at RM0.60 and RM0.50. A close back above RM0.675 should result from firm buying, with a close above RM0.73 as confirmation. The price target is also the psychological RM1.00 level, not too far from year high of RM0.96.
Equine Capital: Touching a 2-year high. This is another penny stock that has drawn tremendous market interest. It even printed an all-time high in November, with its strength shown by the higher lows made in Aug/Sep compared to March. But similar to the other stocks, the selling which returned on Monday was preceded by a gap. Therefore, the stock has to find support before it can launch another leg up. Obvious support lies at RM0.55, the gap of 11 Nov, followed by RM0.515 – which is the high of Sept that also represents a 62% retracement of the Sept-Nov rally. Resistance is at Monday’s gap at around RM0.60 and thereafter, the year’s intraday high of RM0.65. A break at RM0.65 will confirm the second leg of the rally and a strong upward move can be expected. That will see the share price hit a 2-year high while a break above the 4-year high of RM0.75 could see an attempt to cover the 2008 gap of RM1.10 and RM1.35.
RCE Capital: Burst of buying. The stock has been trending lower since the start of 2009, as illustrated by the series of lower highs. However, this may change if the stock can sustain the buying support that kicked in sometime early Oct. The volume spike on 7 Oct signaled the start of buying, with the gap indicating a change in sentiment, which was followed by second spurt of buying on 17 Nov. The share price has not responded well to the second burst of buying but a return of buying is still possible as long as the share price stays above the Nov low of RM0.46. A position can be taken above RM0.46, and a close above the Oct high of RM0.51 should confirm the return of buying and also see the violation of the 200-day MAV line. The stock may attempt to cover the gap of Dec 2010 at RM0.63. Minor resistance is expected at RM0.56, the measured move of the Oct rally and also the high of March and July, while a close below RM0.465, however, should see a continuation of selling, with a confirmation on a new low below RM0.40.
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