LionInd rallied strongly to close at RM1.87 today. The strong buying was probably driven by rumors that Baosteel may be buying an undisclosed stake in Amsteel Mill Bhd for a sum of USD1 billion. For more, go here.
As a result of the sharp rally, LionInd broke above its downtrend line at RM1.65 in the afternoon. Its next resistance is the horizontal line at RM1.95 & then the psychological level of RM2.00.
Given the poor sentiment in our market presently & the sharp rally in LionInd this afternoon, this is one possible trading BUY that I would be most hesitant to recommend. If you choose to go in, be sure to put on your protective stop.
Chart: LionInd's daily chart as at June 22, 2011 (Source: Quickcharts)
No comments:
Post a Comment