N2N's share price may trade higher after closing above the significant resistance levelyesterday. The stock has been consolidating sideways between RM0.20 and RM0.50for more than 3 years. But the trend is  likely  to change after the stock closed above the psychological RM0.50yesterday.  The breakout was on significantvolume which is the highest in 2 years and thus, reducing the probability of afalse breakout. A close above RM0.50 today will confirm the breakout. Thus,purchases can be made above RM0.50 with a stop on close below this week's lowof RM0.41, also the uncovered gap of 29 Feb. A more aggressive trade may evenexit on a close back below RM0.50. The price target is RM0.80, a measured movebased on the 3-year sideways move and a strong move could even see the pricetesting the psychological RM1.00. The trade will not work out should the stoploss  be triggered and  when this happens, the stock is likely totrade sideways instead.

Silk's  share  price may trade higher after  the strong move yesterday. The stock hasbeen  rallying strongly since making alow in Sept 2011. It is now trading at its 2-year high and testing the 5-yearresistance level of RM0.50. The strong move on a 'Long White' candle yesterdaysuggests that the stock may have enough momentum to break the resistance level.Volume was  also at  the highest in 2 years, suggesting sustainedbuying interest. As such, purchases can be made, if possible, on pullbacktowards the stoploss level  of RM0.40,the low of this week. It is preferable to wait for a close above  RM0.50 before entering. A close above RM0.50 todaywill be the highest close in more than 5 years. An aggressive trade may chooseto exit on a close back below RM0.50, as the possibility of a false breakout cannot be ruled out. The pricetarget is RM0.85, a measured move based on the sideways trade of the past 5years. The trade may not work out if  thestock closes below RM0.40, which suggests that it  is  likely to see a  return  of the sideways trend. Expect support atRM0.30 and RM0.20.

Source: OSK188