Nov 12, 2012

Conditional Trading buy – REDTONE

Redtone International Bhd (stock code 0032) Trading/Services – RM0.405

below: Redtone daily chart (click to enlarge)

redtone analysis 

Chart wise:
After consolidating to the RM0.36, Redtone’s candles shot up again over the past few sessions to take out the medium term uptrend line. Expectedly, the core indicator has turned up and is just passing into the positive zone, thereby generating a mildly bullish stance.

Although the price has spiked up strongly over the past few sessions, the stock is worth a trading buy if it clears the top of RM0.41 resistance.

Alternatively, if a swift consolidation occurs, and the candle stays above the uptrend line support of RM0.39, there are also trading buy opportunities. The other support and resistance levels are at RM0.38 and RM0.41, Friday’s intraday high.

by Mercury Securities