Ta Ann Holdings
Ta Ann, according to RHB Research’s technical analysis report (September 7), is set to propel upwards as it breached the sideways consolidation level of MYR4.05 and printed a “Bullish Marubozu” candlestick yesterday – forming a “higher high” bullish pattern above the 21-day average line. If the breakout is sustained, the uptrend may take the stock to the next resistance of MYR4.49, which is also 22 Jun’s high, followed by MYR4.85 (the high of 13 Jun). However, the stock may reverse direction if it falls below the MYR3.84 support – as it may form a “lower low” bearish pattern below the average line.
Coastal Contracts
Coastal Contracts is set to resume its uptrend after reclaiming the area above the immediate resistance of MYR1.85
yesterday, on surging trading volume. Note that the stock initially broke above the level last Thursday, then retraced
below it on Monday before rebounding above it again yesterday. Hence, we think strong buying momentum may
prevail in the coming sessions towards the MYR2.00 psychological level, followed by MYR2.09 – its YTD high. If it
falls below the MYR1.78 support, the momentum may reverse direction as it forms a “lower low” bearish pattern, below the 21-day average line.
