Aug 6, 2015

Hibiscus Petroleum – Technical Buy

Extending Uptrend: Hibiscus Petroleum Bhd (stock code 5199)

Closed: RM 0.87  Resistance:  (R1) 0.96 / (R2) 1.06  Support:  (S1) 0.84 / (S2) 0.78

Hibiscus Daily Chart (click to enlarge)hibiscus analysis

Hibiscus Petroleum Bhd has reverted to an uptrend since hitting all time low at 65 sen on 29th May 2015. On 1st July 2015, it broke the 50-day moving average  (blue line)  after climbing 3 sen and closed at 77.5 sen. Following the breach, it continued trade upwards within the uptrend channel and broke the 100-day moving average  (pink line)  on 21st July 2015.

Yesterday, it climbed 0.5 sen and touched both the 200-day moving average  (orange line) and the upper channel of the uptrend. Following yesterday’s gain , the stock could retrace to the lower uptrend channel with immediate support at 84 sen marked by 61.8% Fibonacci retracement level.

Technical indicators are positive with the MACD crossing above its signal line on 5 th June 2015 coupled with RSI in the overbought zone. Immediate resistance is seen at 96 sen marked by 38.2%
Fibonacci Retracement line. Second resistance is sen at RM1.06 where 61.8% Fibonacci Retracement line stood.

For the downside, we advise traders to cut loss if the price falls below the second support of 78 sen marked by 100-day moving average  (pink line)

by JF Apex Securities

The Company intend to establish as a junior independent Malaysian oil and gas E&P company with the sole focus on developing small oil and gas fields in the South Asia South East Asia and Oceania regions. The Company plan to achieve this by identifying and acquiring target company assets which participate in upstream oil and gas E&P activities. Upstream oil and gas activities consist of exploration development and production of oil and gas resources.