Thursday, April 21, 2011

Daily IOICORP Chart: Technical Rebound Will Be Capped Around RM5.60-5.80

Stock to watch – IOICORP (RM5.40-Sell into strength)

IOI– Technical rebound will be capped at RM5.60-5.80

IOICORP tumbled from 2011’s high of RM6.16 on 4 January to as low as RM5.29 on 18 April, mainly due to the suspension of Roundtable of Sustainable Palm Oil (RSPO) certification amid disputes over land issues, endangered wildlife habitat and illegal deforestation in Sarawak, raising reputational risk.

The fall below the uptrend line (UTL: RM5.60) and 200-d SMA (RM5.55) suggest that the bears are gaining momentum. Although IOICORP rebounded from RM5.29 to close at RM5.40 yesterday on abating selling pressures and bottoming up of technical indicators, near term outlook remains uninspiring.

Further rebound will likely be capped at RM5.55 and RM5.80 (38.2% FR). Meanwhile, support levels are situated around RM5.20 (61.8% FR) and RM5.00. Unload on strength.

Daily IOICORP Chart: Technical Rebound Will Be Capped Around RM5.60-5.80
IOICORP 22-04-2011


Source: HLeBroking

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