Palette’s share price may climb further after last Friday’s firm close. The stock is actually on a longer term uptrend. It bottomed in mid-2010 and has been making higher lows since. The stock spent the whole of last year consolidating the gains of late 2010, but a new leg of the rally may have started after the firm close last Friday, the highest close in almost 2 months. The move looks credible as it was accompanied by a significant volume increase, which indicates strong buying interest. As such, a position can be taken now, or if possible, on a pullback towards the stop-loss of RM0.06. The price target is RM0.14, a measured move based on the year-long sideways consolidation range, provided that the psychological RM0.10 level, where a false breakout occurred in Nov 2011, is convincingly violated. A trade may not work out should the stop be triggered and a violation of the 10-month support level may put the 2-year uptrend in jeopardy.
No comments:
Post a Comment