Nov 21, 2012

Stock Trading Buy – JCY

JCY International Bhd (stock code 5161) Technology – RM0.835

jcye above: JCY daily chart (click to enlarge) 

JCY’s share price took a tumble earlier and had since consolidated into a vague reverse head and shoulder formation. Currently, it is forming the right shoulder of the potentially bullish pattern with an implied price target of RM0.90. Its technical indicators have also recovered from bearish tendencies and are on the rise.

The level to watch out for is the RM0.84-0.865 resistance band, where the share price is expected to face some selling pressures from profit taking activities. Nevertheless, the overall technical outlook is positive and we are calling a Trading Buy on JCY.

by Mercury Securities