We featured the stock late last month in view of its potential to make a short-term top. Since then, the stock has peaked and gone into a correction. The correction, which can be classified as a form of sideways consolidation, is unfolding just above our first target of RM0.90. The 2011-high of RM0.90 has now turned into a support as the price has bounced off this level three times in the past one month. Therefore, this could be the base for the stock’s next upward move. A speculative purchase can be made above RM0.90, while a close above RM0.94 will increase the possibility of an upward continuation, with a close above RM1.00 as confirmation. A measured move based on the Dec- Feb rally could see the price scale as high as RM1.30. However, should RM0.90 be violated for 2 consecutive days, expect strong support at RM0.80, the confluence of Fibonacci levels based on the rally since the September low.
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