Naim Indah needs to stay above the short term support tokeep its rally intact. We highlighted this stock early this month in  our Hot Stock report, pointing out that theupside bias of its rally since Jan is expected to stay as long as the stockcloses above the psycholgocial RM0.50. This turned out correct as the stock'sprice  rally picked up pace. It  was again thwarted by the RM0.70 resistancelevel but despite the pullback  in thepast 2 weeks,  its outlook remains unchanged.  In fact, the stock's  downward momentumhas  been easing in the past 2 days, asseen from the 'Small Dojis',  which indicate  support just above  the psychological level. However, buying is only confirmed on  a close above the 2-day high of RM0.52, and a purchase can be made if thiscomes with a stop loss on  a  close below yesterday's low of RM0.49.  This will keep the series of higher lowsintact.  Resistance remains at theprevious levels  at  RM0.60 and RM0.70 but a successful violationof both levels  could see it testing  the psychological RM1.00.  A  trade may not work out if the stop loss istriggered and a consecutive close below RM0.50 may turn bias down. A closebelow RM0.41 should confirm the weakness and may even spell the end of the3-month uptrend.

Borneo Oil's share price has to stay above the broken resistance to keep its  upward bias intact. This stock was previouslyfeatured in Hot Stock on the possibility of its uptrend continuing should the sidewaysconsolidation end. The upward move did not materialize and the  stock continued to  consolidate. Nonetheless,  its upward bias remained intact throughout the 5-month consolidation,  as seen from the series of higher lows andthe rising 50-day MAV line. The consolidation is likely to have ended yesterdaywhen the stock closed above the 6-month resistance at RM0.45 on heavy volume, suggestingfirm buying interest. Another close above this  price today  should confirm  the breakout and  while a  purchase can be made aboveRM0.45, with a close below  the  3-month low of RM0.39 as stop loss.  A more aggressive trade may  entail using yesterday's low of RM0.425as  a stop instead. A measured move based on the Oct 2011 rally could see  the stock jump to as high as RM0.55, providedthat  it breaks the  prior highs of RM0.465 and RM0.50. A closeback below RM0.45 today may signal a  possible false break, with aclose below RM0.425 as confirmation. Strong support lies at RM0.39, a violationof which may signal the end of the uptrend.