Thursday, December 29, 2011

OSK Research: LFE Corp may trade higher after peaking at 27.5 sen

KUALA LUMPUR (Dec 29): OSK Retail Research said LFE Corp's share price may trade higher if it can hold above the short-term support level.

It said on Thursday the stock had been trending higher since early-October, which has culminated in a peak of 27.5 sen three weeks ago.

After the strong move, the stock has been consolidating the gains, correcting exactly 62% of the September-December rally at 14.5 sen.

OSK Research said with LFE share price holding at 14.5 sen in the past four days suggested buying support, possibly nullifying the downside bias of the prior 'Black' candles.

'But the new up-leg can only be confirmed on a close above the four-day high of 16.5 sen and when this happens, a purchase can then be made. Otherwise, an aggressive trade may enter now in anticipation of a bottom,' it said.

OSK Research said a stop-loss point was at the recent low of 14.5 sen. The first target is the year high of 27.5 sen and a strong move could see the price testing the two-year high of 38.5 sen.

However, the research house said a close below 14.5 sen would see the continuation of selling that started on Dec 12, while a close below the 10.5 sen support might spell the end of the rally.

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