Jan 31, 2013

ITRONIC - Watch For A Decisive Breakout

Highlights:  Industronics ("ITRONIC") Stock  Code 9393

below: INDUSTRONICS BHD daily chart (click to enlarge)


It wasn't all doom and gloom for the local bourse,  and among the bright spots was ITRONIC which has been bucking the overall market selldown in the past month. For the January month, ITRONIC almost doubled from its  lows of 28.5 sen. In fact, the share price ended 5.5 sen higher at 59.5 sen yesterday. This comes after a brief single-day pause in the month long rally. With yesterday's strong move, ITRONIC is now within a whisker of the long term resistance line. Buying momentum in the share remains strong, although the 14-day Stochastic and RSI indicators have both entered into overbought regions.

We reckon that some near term consolidation is due. Nevertheless, traders should watch for a decisive breakout above the 60 sen resistance level which would potentially herald thestart of the next up-leg 65 sen and 75.5 sen.

by Kenanga Research

The principal activities of the Industronics Bhd include the design, manufacture and installation of electronics and microprocessor controlled products, telecommunication equipment supply and services, AV multimedia systems, intelligent transportation systems and major system integration projects involving Information Communication Technology.