Tuesday, July 17, 2012

Orient- a visit to the all-time high soon?

Orient has broken above its ascending triangle, ABC at RM6.80 last Friday. Yesterday, it tested the psychological RM7.00 mark & pulled back. This morning, it broke above the RM7.00 level convincingly on big volume. With this breakout, Orient is continuing on its prior uptrend. All indicators - MACD, RSI & ADX- are positive.

Chart 1: Orient's daily chart as at July 17, 2012_9.15am (Source: Quickcharts)

With the breakout above the RM7.00 mark, Orient's uptrend is likely to accelerate. The stock is in a parabolic rise and it may soon test its all-time high of RM7.70. If it can break above that level, it could hit a target of RM8.50 (as per my projection below)

Chart 2: Orient's monthly chart as at July 16, 2012 (Source: tradesignum)

Based on technical consideration, Orient could be a good trading BUY.

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