KUALA LUMPUR (March 26): OSK Research said JCY’s share price may rise further if it can close above the 50-day MAV line.
In its technical outlook, it said on Monday the stock has been correcting the sharp rise of the October-January rally for two months now.
However, the research house said this could be over following the consecutive price increase in the past three days. There were signs of strength after it failed to close below RM1.07 last week, despite testing it three days in a row.
“The level also happens to be the 38% retracement of the Oct 2011-Jan 2012 rally. Buying was confirmed on March 21 when it closed the highest in seven days, on a “Long White” candle. Volume has been consistently higher, suggesting the return of buying interest. Therefore, purchases can be made possibly on pullback toward the stop-loss level of RM1.07,” it said.
OSK Research said a more conservative trade may even wait until the December-high of RM1.26 is broken, which will erase the dampening effect at the March 22 “Shooting Star”. The research house added the target is the early-January high of RM1.50 and a strong move could see the test of RM1.60, the high of June 2010.
“However, a failure to break above RM1.26 could see the return of selling, with a close below RM1.07 as the confirmation. Look for further support at 94 sen and 80 sen,” it said.
In its technical outlook, it said on Monday the stock has been correcting the sharp rise of the October-January rally for two months now.
However, the research house said this could be over following the consecutive price increase in the past three days. There were signs of strength after it failed to close below RM1.07 last week, despite testing it three days in a row.
“The level also happens to be the 38% retracement of the Oct 2011-Jan 2012 rally. Buying was confirmed on March 21 when it closed the highest in seven days, on a “Long White” candle. Volume has been consistently higher, suggesting the return of buying interest. Therefore, purchases can be made possibly on pullback toward the stop-loss level of RM1.07,” it said.
OSK Research said a more conservative trade may even wait until the December-high of RM1.26 is broken, which will erase the dampening effect at the March 22 “Shooting Star”. The research house added the target is the early-January high of RM1.50 and a strong move could see the test of RM1.60, the high of June 2010.
“However, a failure to break above RM1.26 could see the return of selling, with a close below RM1.07 as the confirmation. Look for further support at 94 sen and 80 sen,” it said.
