KUALA LUMPUR (Jan 25): OSK Retail Research said Flonics’s share may trade higher after the firm close last Friday.
It said on Wednesday that after it highlighted the stock’s weakness in mid-December, the stock has declined sharply. It even broke below the 17 sen support level, which reduces the possibility of upward continuation.
OSK Research said nonetheless, Flonic found support at 11 sen, at the low of August and October 2011.
“After consolidating in a tight sideways range for two weeks, the strong “White” candle move last Friday likely signals the start of a rebound, with the high buying volume lending credence to the move,” it said.
The research house said traders should look for it to trade higher and a position can be taken at the current level, or if possible, on pullback towards the stop loss at 11 sen.
“Given the low possibility of upward continuation, the price target is 19 sen, the low of mid-November, which represents a 38% regain on the November-January decline,” it said.
OSK Research said this was provided that the stock can break above the 17 sen resistance level, which was the high of July and September 2011.
“The trade will not pan out on a close below 11 sen, and the stock should continue its downward move instead,” it said.
It said on Wednesday that after it highlighted the stock’s weakness in mid-December, the stock has declined sharply. It even broke below the 17 sen support level, which reduces the possibility of upward continuation.
OSK Research said nonetheless, Flonic found support at 11 sen, at the low of August and October 2011.
“After consolidating in a tight sideways range for two weeks, the strong “White” candle move last Friday likely signals the start of a rebound, with the high buying volume lending credence to the move,” it said.
The research house said traders should look for it to trade higher and a position can be taken at the current level, or if possible, on pullback towards the stop loss at 11 sen.
“Given the low possibility of upward continuation, the price target is 19 sen, the low of mid-November, which represents a 38% regain on the November-January decline,” it said.
OSK Research said this was provided that the stock can break above the 17 sen resistance level, which was the high of July and September 2011.
“The trade will not pan out on a close below 11 sen, and the stock should continue its downward move instead,” it said.
