SKP's share price may trade higher after closing above the significant resistance level lastFriday. The stock was featured last month on the  possibility of  undergoing a correction. The stock formed weak candles just below the psychologicalRM0.50. Selling was seen by way of a 'Long Black' candle on 1 March but the expectedfollow-through selling did not happen. Instead, the  price has slowly edged higher. It has nowclosed above the RM0.50 level for two days in a row. It was accompanied by highvolume, the highest since the start of the year, which suggests good buying support.Therefore, the chances of a false breakout have beenminimised and look for the stock to trade higher. Purchases canbe made above RM0.50 with a stop on close below the 'Long Balck' low ofRM0.46.  The price target is RM0.70,based on a measured move of the Jan-Feb rally. The trade will not work if thestock closes below RM0.46. This will confirm the false breakout of the RM0.50 leveland look for  the price to fall instead.Support is expected RM0.39, the gap of 25 Feb and the 50% retracement of theJan-Feb rally.

Focus Dynamics' share price may trade higher if it canviolate the short-term resistance level. The stock has been  consolidating sideways for 3 weeks now, aftermaking a 2-year high in midFebruary. A negative 'Shooting Star' was formed on21 Feb, highlighting the presence of sellers below RM0.16,  which is the highest close of the current rally. Nonetheless, the upward bias hasnot diminished as the negative candle had  only induced a shallow sidewayscorrection. As such, the possibility of a continuation of the rally  stays high. The resumption of  the rally is only confimed on a close above RM0.16, and positions can beinitiated  when  this happens. The 3-week low of RM0.14, alsothe high of Nov 2011, can be employed as stop loss. A measured move based onthe February rally could see the price head towards RM0.25 ' a major support in2007 ' provided that  the RM0.20psychological level is violated. A strong move could even see it testing  the 2008-high of RM0.30. However, look for the correction to continue shouldthe stop loss be triggered. Support  isexpected at RM0.125 and RM0.11,  the Fibonaccilevels of  the  February rally.  Also, strong support  lies at the January-low of RM0.09 and a closebelow may signal the end of the 6-month rally.

Source: OSK188