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Thursday, December 15, 2011

Amedia, Eduspec (OSK)

Asia Media’s share price may trade higher with the highest closing in more than 6 months. The stock has been on a gradual rise since the low of September, as illustrated by the 4-month upward trend line. However, the resistance level of RM0.30 kept the uptrend in check twice in the past one month. This validated the first test failure back in July. It did not result in a change in the trend, as buying support was ever present, which was confirmed by the strong upward move yesterday. It formed a “Long White” candle on good confirming volume. As such, the uptrend is expected to continue. Purchase can be made at the current level, with a stop loss on close below the 3-day low of RM0.275. A tighter stop may employ a close below RM0.30 instead. The price target is RM0.40, which was the opening price on its debut and not too far off the intraday high in April. But do expect minor resistance at RM0.33, the intraday high in June. There is a possibility that the stock may need to consolidate yesterday’s gain before scaling higher. The uptrend is considered good as long as the stock stays above RM0.275.

Eduspec share’s price may trade higher after yesterday’s positive move. There is no doubt that the stock is on a downtrend. However, the “White” candle which formed yesterday could see the trend changing. The close was the highest in six months, above the RM0.13 resistance level. It was accompanied by a volume spike, which suggests firm buying support. This move is positive too, as it came after the one-and-a-half month sideways consolidation, signaling the continuation of the September rebound. Thus, the upward movement is expected to continue and purchase can be made at the current level with a stop loss on close below the 2-month low of RM0.11. Otherwise, an aggressive trade may employ RM0.13 as stop. The price target is RM0.13, a measured move based on the September rally and a strong move could see it testing RM0.20, just above the year’s intraday high. Note that the stock may need to consolidate yesterday’s move, which could result in a false breakout. But the upward bias stays intact as long as the price stays above RM0.11.

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