Oct 10, 2013

Breakout: Trading Buy On HoHup

Ho Hup Construction Bhd (stock code 5169) Construction – RM1.79.

below: HoHup Daily Chart (click to enlarge)

hohup chart analysis
Ho  Hup‘s  candle  made  a  strong  breakout  of  its  long-term  downtrend  line  as  well  as  the RM1.50  level  and  tested  the  RM1.84  level  yesterday. The  strong  run up  also  allowed  the candle to breach its congestion band at around the  RM1.30-RM1.50 level. Its indicators are also  on  the  rise,  suggesting  further  upsides,  but  yesterday’s  surge  may  prompt  a consolidation.

Therefore, the stock is also worth a buy if it takes out the RM1.85 in the near term, otherwise it  would  be  wise  to  wait  for  the  consolidation  to  take  its  course  first.  There  is  support  at RM1.30 with the strong support at RM1.00. The resistance, meanwhile is at RM1.95.

by Mercury Securities

Ho Hup Construction Bhd is principally involved in property development, manufacturing and distribution of ready-mixed concrete, engineering, construction and commissioning of a pipeline system.