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Thursday, 5 December 2013

KAREX BERHAD (5247)

KAREX BERHAD (5247)                                                                                 HAFIZ RUSLI

Share analysis
Based on the hourly chart, short term uptrend still intact as the price managed to stay above uptrend line. Volume divergence can be notice on the chart, volume diminish while price getting higher. It indicates that
the uptrend is getting weaker while RSI and MACD indicators hovering around overbought territory. I reckon that correction is about to happen as the price already in overbought followed by low volume. Spot reversal candlestick pattern such as harami or shooting star to confirm the pullback. Immediate support level will be at 50% Fibonacci retracement level Rm 3.34. Failure to stay above Rm 3.00 will lead to further downtrend.

Trading strategy
Short term investor is advisable to take profit as the price already close to its resistance level. Supported by robust fundamental and huge growth opportunity, long term investor should hold this counter because I believe it may generate more than 100% of profit.


Price projection
Short term          Resistance-                   Rm 3.80 (previous high)
                          Immediate support        Rm 3.34 (50% fibbonacci retracement and resistance turn support)

                          Major support              Rm 3.00 (Psychological support level)

Long term          Resistance                    Rm 4.00 (Psycological level of resistance)

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