NSTP- light at the end of a long tunnel

NSTP has been in a downtrend for a very long time that many investors have given up on this stock. From Chart 2 below, we can see that it has dropped from a high of RM5.10 in February 2004 to a low of RM0.97 in December last year. However, NSTP's fortune may be changing...

Four days ago, NSTP broke above its 3 months' trading range of RM1.10 to RM1.35 (see Chart 1 below). Yesterday, the share has convincingly cleared its long-term downtrend line resistance at RM1.35. With this positive development, I believe that NSTP may have commenced on its long-awaited recovery. The share may encounter resistance at RM1.70, RM2.00 & RM2.50.


Chart 1: NSTP's daily chart as at July 30, 2009 (Source: Quickchart)


Chart 2: NSTP's weekly chart as at July 30, 2009 (Source: Quickchart)

As such, NSTP could be a good trading & long-term BUY.