KUALA LUMPUR (Jan 9): OSK Research says Unisem’s share price may trade higher after the strong close last Friday.
It said on Monday there is no doubt that the stock is on a downtrend since May 2010.
“But firm buying last Friday may yet spark a change in trend, and it happened on tremendous volume too, which suggest accumulation action.
“This comes on a back of slowing downward momentum, where the stock hovered just above the psychological RM1.00 for more than a month. It has even broken above the 100-day MAV line,” it said.
OSK Research said as such, purchase can be made now or preferably on pullback towards the stop-loss level of RM1.05, the low of last week.
The research house said the price target is RM1.54, which will claw back 50% of the April-Sept 2011 decline – also the low of May 2011 – and a strong move could see the price testing RM1.67, the bottom of May 2010 and high of June 2011.
“This is on the condition that the stock breaks above the 3-month high of RM1.28. In fact, a conservative trade may wait for a successful violation of the RM1.28 resistance before initiating positions, with a close below as the stop,” it said.
It said on Monday there is no doubt that the stock is on a downtrend since May 2010.
“But firm buying last Friday may yet spark a change in trend, and it happened on tremendous volume too, which suggest accumulation action.
“This comes on a back of slowing downward momentum, where the stock hovered just above the psychological RM1.00 for more than a month. It has even broken above the 100-day MAV line,” it said.
OSK Research said as such, purchase can be made now or preferably on pullback towards the stop-loss level of RM1.05, the low of last week.
The research house said the price target is RM1.54, which will claw back 50% of the April-Sept 2011 decline – also the low of May 2011 – and a strong move could see the price testing RM1.67, the bottom of May 2010 and high of June 2011.
“This is on the condition that the stock breaks above the 3-month high of RM1.28. In fact, a conservative trade may wait for a successful violation of the RM1.28 resistance before initiating positions, with a close below as the stop,” it said.
