OSK Research: Downward momentum of UOA Devt share price has eased

by **hlk** Thu 19 Apr 2012, 21:37

KUALA LUMPUR: OSK Retail Research said the share price of UOA Development has been trending lower since its debut in June 2011.

“However, the downward momentum has eased recently, possibly due to accumulation at these low levels. This may lead to a change in trend but more is still needed to confirm the end of the downward trend,” it said on Thursday.

To recap, OSK Research featured UOA Development late last year in anticipation of a change in trend.

The research house said an expected and apparent upward move did not happen but the sideways move since the low in December 2011 still keeps this possibility alive.

OSK Research said the accumulation is likely to have taken place during the bottom of October 2011, as seen from the heavy volume for the stock.

It pointed out that buying support is also seen from the series of higher lows, at RM1.15, RM1.30 and RM1.40. The stock has also responded well to the buying support at the latest bottom in early April, as it had closed at the highest level in more than three months.

The research house pointed out the upward bias seen in the past six months remains unconfirmed as the stock has yet to rise higher, despite the rising trend of the broader market in the past four months.

It said the stock has to violate the RM1.60 resistance level to affirm the upward bias. This will also see the 200-day MAV line broken, which is usually interpreted as a longer-term positive indication.

“Positions can be initiated if this happens with a stop loss on close below RM1.40. An aggressive trader may even accumulate now in anticipation of a successful breakout. Firm resistance is expected at RM1.70, the high of October 2011, and RM2.05 the gap of early August,” it said