Gamuda may  risefurther  after the strong move yesterday.The stock  has  rallied sharply since bottoming in Sept lastyear and the recent peak in February was just a whisker away from the 52-week highset in July 2011. It has since corrected but its upward bias prevailed,  as thelow  of RM3.54  in early March represents a correctionof  only 38% of the Nov-Feb rally.  The highest close in almost a month yesterdaysuggests that  the stock has made  a higher bottom. Yesterday's  'Long White' candle on the highest volume inmore than a year indicates firm buying interest, which has brought  the stock   back above the 50-day MAV line.  Thus,  a purchase can be made above RM3.70, thehighest close in 4 weeks, with a close below RM3.62 as stop loss. The RM3.62level is the low of  the  'Long Black' of 16 May and also the low ofMonday.  The price target is RM4.25,which is the high of last year, provided that the psychological RM4.00 ' theresistance of April and July last year' is violated convincingly. A close belowRM3.62 could be disastrous for the stock as it signals the failure of  the price follow-through despite the positive sentiment. Support should comein at RM3.45, the high of Oct/Nov 2011 and the 50% retracement of the Nov-Feb rally.

MMC's share price may go up if it can break above theshort-term resistance level.  The stockhas been  in correction mode since the falsebreakout  from the psychological RM3.00in early February. Nevertheless, the correction had  an upward bias as thelow  of RM2.73 in early Feb was a 50%retracement of the Nov-Feb rally, a healthy correction based on Fibonaccianalysis. The stock also found support from the rising 50-day MAV line.Yesterday's strong surge may have ended the correction as the stock formed a'Long White' candle on high volume, which suggests firm buying interest. Inview of  the  upward continuation, a  purchase can be made now, with a stop loss ona close below RM2.73, while a conservative trade may involve waiting until thepsychological RM3.00 is violated before a position is initiated. A measuredmove based on the  Nov 2011 to Feb 2012rally  could see  the price reach  RM3.40, just above the high of 2011, while astrong move could see it  climb  as high as RM3.80, based on the sideways moveof the past year. As a close below RM2.73 will nullify the upside bias,  look for the stock to revert to its sidewaysmove.

Source: OSK188