Jul 28, 2010

LATITUD stock code 7066 - technical short term buy

Latitude Tree Holdings Berhad (LATITUD) manufactures and sells wooden furniture and parts.

LATITUD made a Wave 2 low of RM1.60, with strong bullish divergence and had since trended in an upward mode. We believe the stock is in a strong Wave 3 uptrend. With the positive crossovers from the CCI, DMI, MACD, Stochastic and Oscillator indicators, we feel that LATITUD may rise and test the stipulated resistance levels. 

SHORT-TERM BUY (TECHNICAL) on dips for LATITUD with its firm support areas of RM1.62 and RM1.84 and upside target areas of RM1.95 and RM2.04. Stop-loss is at RM1.60.

below: Latitud daily chart


by Maybank Investment Bank