BJToto should be good for a quick trade

BJToto has found itself in an unfamiliar territory, lately. The top dog amongst the Number Forecasting Operators (NFO), BJToto has always been regarded as the better investment stock when compared to Magnum. While not in the same league as Tanjong, BJToto was preferred because of its superior dividend yield.

In the past 2 months, BJToto has been drifting down after making a high of RM4.98 on November 30, 2006. It is presently resting on its medium-term uptrend line, with the support at RM4.60/62. The past 3 days saw the stock trying to participate in the current market rally and, in the process, it has broken above the short-term downtrend line, with resistance at RM4.68. While the hesitant move has not been convincing, I believe the stock will have a successful take-off very soon after it has shaken off a few more stale bulls.

Based on the above, I would recommend that you accumulate this stock at the present price. My target for the upward move is RM5.00/25. On the other hand, if in the unlikely event that the stock were to break below RM4.60, you may like to have a protective stop at RM4.50 as more selling may ensue.


Chart: BJToto's daily chart as at Jan 25