AFG's  shareprice  has to close above thepsychological level to keep the rally intact. The stock has been consolidatingsideways below RM3.90 thorought the month of March, after the strong rally ofSept-Jan.  The sideways move  seems to have an upward bias, judging fromthe higher lows and rising 100-day MAV line. Thus, an upward continuation isexpected and the consolidation  phase mayhave ended yesterday after the higher close with a gap up. Nonetheless, the requiredconfirmation of a close above RM4.00 is not fortcoming and a position can beinitiated if this level is violated convincingly. A close below  the February-low of RM3.70 can be employed as  a  stoploss, while an aggressive trade may opt for yesterday's gap low of RM3.90instead. The price target is RM4.30, based on the sideways move, and a measuredmove based on  the Sept-Jan rally mayeven see it  go  as high as RM4.70.  A failure to close  above RM4.00 in the coming days couldpotentially mean a false breakout, with a close below RM3.70 confirming theprice weakness. A close below RM3.70 will also see the violation of the 100-dayMAV line and may even signal the end of the rally since June 2011.

Tebrau's share price should trade higher  if it  holds above the support level. The stock washighlighted in early March for its likelihood of finding a bottom  at RM0.85 and surging ahead. The anticipated  move higher did not happen as the stock foundresistance right at RM0.90. Weakness was confirmed when the stock closed belowthe stop-loss  level  of RM0.85. However,  the recent price actionsuggests that buying support may have returned at the RM0.77 level. The declinefailed to close the gap of 2 Feb, and the positive 'Hammer' and 'DragonflyDoji' candles formed instead.  Notethat  RM0.77 was also the high in Nov2011 and retraces 50% of the Sep 2011-Feb 2012 rally. The rising 100-day MAVline is supportive too. Thus, a higher low may be formed and a purchase can bemade on close above the 'Dragonfly Doji' high of RM0.80.  An aggressive trade may enter now  in anticipation of higher prices, while aclose below RM0.77 can be employed as the stop loss.  A measured movebased on  the  Jan-Feb rally could see the stock testingRM1.12, provided that the 2'' -year high of RM1.00 is broken. Moreover, a strongmove could even see a test of  the 2008-highof RM1.40.  Meanwhile, a close belowRM0.77 will invalidate the trade, and look for it to trade lower instead.Strong support is expected at the Dec 2011-low of RM0.69.

Source: OSK188