MPay's share price has to stay above the broken resistance to keep its upward bias intact.The stock  has likely completed a bottomingpattern after the strong move yesterday. To recap, the stock has been tradingsideways for the past  nine  months, after seeing a sharp plunge inApril-May 2011. It reached the bottom in Oct 2011 and  thereafter, the technical picture turnedincreasingly positive, as shown by the higher lows. A change in trend should bein store after the stock broke above the 9-month resistance level yesterday.The 'Long White' candle was accompanied by a surge in volume, which  suggests firm buying interest.  Another close above RM0.20 should confirm thebreakout and a purchase can be made at the current price, or preferably onpullback towards the stop-loss level  ofRM0.20. A more conservative trade may  involveusing the one-month low of RM0.16 as a stop instead.  The price target is RM0.27, the low of April2011, and a strong move could see a test of the psychological RM0.30. A closeback below RM0.20 today may signal a possible false break, with a close belowRM0.16 as  the confirmation.  If this happens, the stock  will likely return to its sideways trend.

mTouche's share price has to stay above the support level tokeep its  upward bias  intact. This stock is one of  the  market outperformers in the past six months,with the stock  trading at its 4-yearhigh recently. Subsequently, the sharp rally gave way to sidewaysconsolidation,  which is  now extending into its  fourth week. We consider such a development as quite natural. The support level ofthe sideways move is now  more  clearly defined after the firmer moveyesterday. The higher close nullified the negative bias of the 'Long Black'candle of 27 March, affirming the 'Long Lower Shadow Doji' of 13 March. Thehighest volume in two weeks also points to a return of buying support above theround figure of RM0.40. Thus, positions can be initiated in anticipation of thestock  making a base above  RM0.40, with a close below the support levelof RM0.40 as a possible stop loss. The price target is the recent high ofRM0.50 and a successful violation could see the stock go as high as RM0.70, a measured move based on the Jan-Feb rally.  A close below RM0.40 should see it tradinglower and may even spell the end of the uptrend as this will lead to thecompletionof a 'Double Top' formation. Strong support is expected at RM0.30, whichis also the high of Oct 2011.

Source: OSK188