Monday, June 07, 2010

LBS may have a bullish breakout

On a terribly bad day, like today, one would be very surprise that a stock made a strong upside move. One such stock is LBS. There were persistent rumors over the past few weeks that LBS has found a buyer for its Zhuhai land. Could this be the reason for the current price rally?

Technical speaking, the stock looks poised to test its downtrend line at the resistance of RM0.55 this morning. The indicators are generally positive, except for the price movement to confirm the breakout. As at 3.50pm, LBS broke above the RM0.55 resistance & was trading at RM0.56. With this upside breakout, LBS could rally to test its immediate horizontal resistance at RM0.62.


Chart: LBS's daily chart as at June 7, 2010_10.00am (Source: Quickcharts)

For those who are very nimble & brave, LBS could be a trading BUY.
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2 comments:

  1. UnknownMonday, June 07, 2010 4:37:00 PM

    Hi Alex,

    Any thoughts on Faber ?

    Tq.

    ReplyDelete
  2. Alex LuTuesday, June 08, 2010 11:20:00 AM

    Hi Seong Wai,

    Faber is a sell on strength. It made an intra-day high of RM2.68 today, which is higher than the high of RM2.63 recorded in w/e April 16. The share price rose on thinner volume- a sign of bearish divergence.

    We noticed this in 2007, when Faber share price rose to a new high of RM1.91 in w/e August 3 on thinner volume than the high of RM1.80 recorded in w/e April 27. The high of RM1.91 was only surpassed in March this year.

    ReplyDelete