Thursday, January 5, 2012

JCY - defying gravity

This is the hottest counter in town! 

JCY has been bottoming out from its all-time low of RM0.41 since October last year & since then has rise all the way to yesterday's close of RM1.18. As of writing, its currently trading at RM1.25, after report on group management expressed optimism of a better-than-consensus earnings for the quarter ended Dec 30, 2011. CIMB research house ups its target price for JCY to RM1.54, in TheEdge.

My take is if the counter can close above RM1.20 today (Jan 5), it will have a high potential to continue the rocket-up trend to find higher resistance level of RM1.30-1.40; with RM1.40 being the 61.8 retracement level of its previous 1.5year (May'10-Sept'11) downtrend. However, the recent surge in price has rendered the counter in overbought region since mid Dec'11. Hence, retracement from its current high is highly expected before any further upside can be seen. A retracement down to immediate support level of RM1.03-1.10 is considered reasonable. While breaking below RM1.00 shall invalidate the aforementioned further upside & the counter shall see further consolidation to the downside in near future.

Happy Hunting! ^_^





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