Jan 3, 2013

Alam Maritim Bullish Pennant Breakout

Alam Maritim Resources Berhad  Stock Code 5115

alam maritim analysis

On Wednesday, ALAM's share price rose 6.6% or 4.5 sen to 72.5 sen after MD and CEO Azmi Ahmad offered positive forward looking comments about the company.

alam maritim technical

From a technical perspective, ALAM has now broken out of a classic "Bullish Pennant" chart formation. Trading volume spiked, and the chart pattern signals a bullish continuation of the uptrend after a two month consolidation phase. The key indicators (MACD, Stochastic and RSI) are all supportive of a move higher, and we reckon that the next leg of the 24 sen upward move is already underway. We suggest that traders looking to buy into the stock may do so now, though risk averse investors may consider buying on a retreat towards  the 70 sen support. For this trade, a stop-loss should also be placed just belowthe lower triangle support at 64 sen.

by Kenanga Research