KUALA LUMPUR (Dec 12): OSK Retail Research said SYF Resources’ share price may trade lower after failing to break above resistance level.
In its technical outlook on Monday, it said the stock has been trending higher since early October and it was quite natural for a correction to set in, especially after the price failed to violate the psychological RM1.
“The second leg of rally started again in December and a continuation appears to be on the cards after the price found support at 60 sen last Wednesday. However, the stock again failed to close above the resistance level of 72 sen, the high of Nov 10. It formed a “Shooting Star”, which denotes a bearish outlook.
“However, weakness is only confirmed by a close below the “Shooting Star” low of 68 sen. As such, positions can be liquidated on a close below that level,” it said.
OSK Research said a speculative sell may even exit on rebound towards Friday’s high of 75 sen and a close below 60 sen will completely erase the upward bias. However, the rebound from last Wednesday’s low may continue if the price manages to close above 68 sen for the next couple of days.
The research house said a close back above 72 sen should confirm the return of buying and thereafter, look for the retest of RM1.
In its technical outlook on Monday, it said the stock has been trending higher since early October and it was quite natural for a correction to set in, especially after the price failed to violate the psychological RM1.
“The second leg of rally started again in December and a continuation appears to be on the cards after the price found support at 60 sen last Wednesday. However, the stock again failed to close above the resistance level of 72 sen, the high of Nov 10. It formed a “Shooting Star”, which denotes a bearish outlook.
“However, weakness is only confirmed by a close below the “Shooting Star” low of 68 sen. As such, positions can be liquidated on a close below that level,” it said.
OSK Research said a speculative sell may even exit on rebound towards Friday’s high of 75 sen and a close below 60 sen will completely erase the upward bias. However, the rebound from last Wednesday’s low may continue if the price manages to close above 68 sen for the next couple of days.
The research house said a close back above 72 sen should confirm the return of buying and thereafter, look for the retest of RM1.
