SMRTECH (OSK)

SMR Tech’s daily chart SMR Tech’s share price may trade lower after the highest close in more than six months. The stock is actually on a longer-term uptrend, similar to most of the stocks that rallied recently. It has been consolidating the June 2010-May 2011 rally for more than six months. The consolidation has a positive bias to it as the low of Sept 2011 was not below that of March 2011. The stock has been rising gradually since the bottom of September and the highest close since July could see the stock breaking above the 2011-high of RM0.205. Yesterday’s firm move was accompanied by the highest volume in more than a year, suggesting strong buying interest. Purchase can be made at the current price with a stop loss on close below last week’s low of RM0.17. A more conservative trade may wait until the price closes above the May-high of RM0.205. The price target is RM0.25, also the high of 2009, a measured move based on the sideways consolidation. A strong move could even see the test of RM0.35, the high of 2007. However, the stock may continue its consolidation should the stop loss be triggered and a close below RM0.15 will reduce the possibility of an upward continuation.