Yesterday, an obvious breakout attempt by Prinsiptek wasdetected as the stock came knocking on the 100-week MAV line with strongervolume. A successful violation of the moving average line  could trigger a major breakout. Hence, we advisetraders to accumulate its shares should a breakout occur. The upside targetsare pegged at the RM0.27 level and RM0.29'RM0.305 area. Consider cutting lossif the share price retraces back below the 100-day MAV line.

The 100-week MAV line has been exerting downward pressure onPrinsiptek's share price since 2010. In 2011, there were two instances offailed breakout attempts at the moving average line.  An obvious failed attempt took place inJan  2011 when its volume shot upabnormally but yet it could not move above the 100-week MAV line. Such adevelopment implies that the stock faces heavy selling pressure at thatparticular moving average line. 

We will see whether the 100-week MAV line could be violatedthis time around. As a break above this line could trigger a major breakout, weadvise traders to accumulate its shares beforehand. If a breakout does occur,we expect to see greater upward momentum as the moving average line has beencapping its upside for a considerable amount of time. The upside targets arepegged at the RM0.27 level and RM0.29'RM0.305 area. After taking positions atabove the 100-week MAV line, traders should also cut loss if the share pricedrops back below the moving average line.

The 100-week MAV line, which is  currently the stock's immediate resistance, is currently situated at the RM0.255level. Additional resistances are seen at the RM0.27 level and RM0.29'RM0.305area. And from the current level, look for immediate support at the RM0.235level, followed by the RM0.21 level.

Source: OSK188