Monday, October 29, 2012

Armada- time to set sail

Armada has broken above the strong horizontal resistance at RM3.80 today. This follows the upside breakout of its intermediate downtrend line at RM3.70 on October 24. With these double breakout, the stock is set for its next upleg. Its next resistance would be at RM4.06.

Chart: Armada's daily chart as at October 25, 2012 (Source: quickcharts)

The catalyst for a re-rating of the stock could be due to the recent news that Armada has taken delivery of its fifth FPSO, Armada Sterling which will serve the India-based Oil and Natural Gas Corporation Ltd (ONGC) at the D-1 field, 200km offshore from Mumbai. Armada is reported to be on the lookout for more prospect in India. For Armada's list of FPSOs, go here.

Based on the bullish breakout, Armada could be a good stock for a trading BUY.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Armada.

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