KUALA LUMPUR: OSK Research said Daya Materials violated its one-year downtrend line last Friday and its share price continued to go higher on Monday, Oct 25.

It said on Tuesday, Oct 26 that last Friday's violation was a significant price action. The breakout signals that the stock's share price is likely to appreciate further going forward.

As Daya Materials' share price has run up aggressively over the last two sessions, there is a possibility that the stock might start to consolidate first before resuming its rally.

"Traders can consider accumulating the shares at above the 20 sen level. If the share price really starts to consolidate, it will provide an opportunity to accumulate its shares. We are eyeing the 26 sen level as the upside target," it said.

OSK Research said its cut-loss point is pegged at below the 19.5 sen level. At below the 19.5 sen level, look for the 18 sen level as the next support followed by the 16 sen level, it said.