KUALA LUMPUR (Jan 25): OSK Retail Research said KUMPULAN HARTANAH SELANGOR BHD []’s(KHSB) share price may trade higher if it closes above the two-day high of 46 sen.
It said on Wednesday the stock has been trading lower since the failed test at 50 sen.
“Nonetheless, due to the spike up in early Jan, there is possibility of upward continuation and in our previous report; we highlighted the possibility of finding support at 40 sen or 36.5 sen, which is also Fibonacci retracement of the November 2011 to January 2012 rally,” it said.
OSK Research said the higher close last Friday with the formation of the “Bullish Engulfing” candle could see the stock making bottom earlier than anticipated at last week’s low of 43 sen.
OSK Research said a “Bullish Engulfing” candle usually occurs at market lows. The upward bias was still not confirmed as it requires a close above the two-day high of 46 sen, it said.
“Thus, a position can be initiated when this happens, with a stop loss on a close below 43 sen. The price target is 73 sen, a measured move based on the Nov-Jan rally, provided that the stock can close above the recent high of 55 sen.
“Otherwise, failure to break above the two-day high, which is followed by a close below 43 sen, should see the continuation of a correction. Again, support is expected at 40 sen and 36 sen,” it said.
It said on Wednesday the stock has been trading lower since the failed test at 50 sen.
“Nonetheless, due to the spike up in early Jan, there is possibility of upward continuation and in our previous report; we highlighted the possibility of finding support at 40 sen or 36.5 sen, which is also Fibonacci retracement of the November 2011 to January 2012 rally,” it said.
OSK Research said the higher close last Friday with the formation of the “Bullish Engulfing” candle could see the stock making bottom earlier than anticipated at last week’s low of 43 sen.
OSK Research said a “Bullish Engulfing” candle usually occurs at market lows. The upward bias was still not confirmed as it requires a close above the two-day high of 46 sen, it said.
“Thus, a position can be initiated when this happens, with a stop loss on a close below 43 sen. The price target is 73 sen, a measured move based on the Nov-Jan rally, provided that the stock can close above the recent high of 55 sen.
“Otherwise, failure to break above the two-day high, which is followed by a close below 43 sen, should see the continuation of a correction. Again, support is expected at 40 sen and 36 sen,” it said.
