Monday, May 16, 2011

Daily Gamuda Chart: On Track To Stage A Positive Breakout As Technicals Are On The Mend.

Stock to watch - Gamuda (RM3.68-Trading Buy)

Gamuda – Poised for a positive breakout


Gamuda’s volume is picking up as newsflow of the MRT works ison track to commence by July. Meanwhile, the tenders for the underground tunneling portion are being finalized and will take place in 4Q11. As the only local contractor qualified to undertake the tunneling works and given its PDP role, the Gamuda-MMC JV is tipped as the main contender for this package.

Gamuda could break out of its descending wedge resistance soon, given the strong close above its 5-d SMA and bullish technicals. The stock could edge higher if the candles can surpass the middle Bollinger band of RM3.71 and 50-day SMA (RM3.75).

Further resistance levels are seen at RM3.85 (upper Bollinger band), RM3.95 (38.2% FR) and RM4.06 (23.6% FR). Supports are RM3.63 (76.4% FR) and RM3.57 (lower Bollinger band). Cut loss below RM3.55.

For leveraging, Gamuda-WD is a good option given its higher liquidity and longer expiry date.

Daily Gamuda Chart: On Track To Stage A Positive Breakout As Technicals Are On The Mend.
Gamuda 16-05-2011


Source: HLeBroking

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