Friday, May 27, 2011

OSK Research: Tong Herr immediate support at RM2.37

KUALA LUMPUR: OSK Research said Tong Herr's share price has been consolidating after experiencing the sharp run-up in November and December last year.

It said on Friday, May 27 the stock has also created a 'Descending Triangle' during its consolidation. With this triangle formation, we have an indication as to when the stock would be resuming its uptrend which started from the November low.

'We would say the current consolidation phase is still healthy as the stock is still holding on to about 50% of the gains picked up over the last two months of last year,' it said.

OSK Research said Tong Herr is expected to continue consolidating within the 'Descending Triangle' until the stock cracks above it. Immediate resistance is situated at the RM2.63 level, followed by the RM2.77 level. To the downside, immediate support lies at the RM2.37 level while next support is at RM2.30.

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