Today we offer another trading strategy based on the 200-dayMAV line. The daily chart clearly shows that Olympia has experienced fivefailed breakout attempts at this moving average line since June last year. LastFriday, this stock tried yet again  totake out this formidable  200-dayMAV  resistance line when the tradingvolume was particularly high. Should Olympia eventually violate this line, wethink the subsequent upward momentum should be massive. Hence, we advise tradersto accumulate the shares should a breakout occur. We are eyeing the RM0.31 andRM0.33 levels as the upside targets, while a cut loss may be initiated shouldthe share price retrace below the 200-day MAV line.

For many months, Olympia's share price has been pressured by200-day MAV line. From the above daily chart, we can see that every reboundattempt the stock has made since June last year has been capped by this movingaverage line. Finally, last Friday, the stock tried very hard to crack abovethis line, as evident by its higher trading volume on that day.

Hence, a trading opportunity  presented itself atthe 200-day MAV line. As the 200-day MAV line has  been capping  the stock's upside for somany months, an eventual breakout from this line is expected to give rise toimpressive gains. Hence, we advise traders to accumulate Olympia shares shouldit violate the moving average line. We are eyeing the RM0.31 and RM0.33 levels- both of which represent the major highs created last year  - as the upside target. Traders may want tocut loss should the stock close back below this 200-day MAV line.

The 200-day MAV line, which now lies at the RM0.27 level, isnow the immediate crucial resistance, while next resistance is seen at RM0.285,followed by the RM0.31 and RM0.33 levels. Immediate strong support lies at theRM0.24 level, followed by the RM0.22 level.

Source: OSK188