Yesterday, OKA’s share price surged to an intraday high of RM1.39, before ending the day up by 3.0 sen (2.3%) at RM1.35. This came on the back of its 3Q17 earnings announcement on Friday, which showed a 32.0% YoY jump, spurred by higher margin products. Consequent to the bullish move, OKA’s share price has just broken out of a pattern resembling a “Cup & Handle” – indicative of a continuation of its longer term uptrend. In fact, the major SMAs have also completed a “Golden Crossover” (50-day/ 100-day SMA) while the MACD is showing signs of bullish convergence. From here, expect a retest of the RM1.38/1.39 (R1) highs. Once taken out, further gains would then be expected towards RM1.49 (R2) and finally the “Cup & Handle” measurement objective of RM1.57 (R3) next. Downside support levels include RM1.30/1.32 (S1) where investors may look to accumulate, although a break below RM1.28 (R2) would be highly negative for the stock
OKA Corporation Daily Chart:
Source: Kenanga Research – 28/2/2017
OKA CORPORATION BHD
The Company's principal activities are manufacture and trading of pre-cast concrete products trading of ready-mix concrete; as well as manufacture and trading of reinforced and pre-stressed concrete piles and the provision of transportation services.