May 28, 2013

Yee Lee Corporation Bhd ("YEELEE") – BUY

Technical Analysis – YEELEE Stock code: 5584

yee lee chart

YEELEE  has  been  trading  sideways  over  the  past  two  weeks  before  staging  a definitive  breakout  above  the  RM1.12  resistance  yesterday.  At  a  closing  price  of RM1.17, the share price was up by 6 sen for the day. We reckon the YEELEE is now ripe for the picking, where the share price could potentially advance another 12 sen towards RM1.29.

The  key  indicator  such  as  14-day  Stochastic  and  RSI  remain  healthy  and  showing improvement in momentum while all SMA lines (20- ,50- ,and 100- day) are also on an upwards move. As such, we suggest short-term traders buy in anywhere between RM1.12-current  level  while  targeting  RM1.27  (2  bids below  RM1.29  resistance).

Correspondingly,  a  stop-loss  should  be  placed  at  RM1.07  (5  bids  below  resistance turned- support). This implies a potential 10.4% upside versus 5.2% of downside risk

yeelee data

by Kenanga Research