In December last year, we advised traders to accumulateR&A shares while the stock was building a new support floor at the RM0.115level, with high volumes seen throughout the month. Nevertheless, the sidewaystrend has yet to change into an uptrend thus far, and it is now at risk ofbreaking the RM0.115 crucial support floor instead. As the sign of price weakness,which  started this Monday, couldindicate a breakdown and our RM0.115 cut-loss level has also been triggered, wesuggest selling R&A shares now. The RM0.08 and RM0.06 levels are thedownside targets. 

In Dec last year, we advised traders to start accumulatingR&A shares as the stock was constructing a new floor at above the RM0.115level, with high volumes seen throughout the month. It did look like thebase-building was very constructive. Moreover, it was a low risk trade at thattime considering the stock was trading just right above our RM0.115 cut-losspoint. However, the sideways trend that started since Sept last year has yet tochange into a new uptrend, and it is now at risk of violating the RM0.115support floor instead. The stock has already closed below our RM0.115 cut-losslevel yesterday. As the stock is now trading below the 6-month old supportfloor and our cut-loss level has been triggered, we advise traders to sell the stock.Should the RM0.115 level be violated in the near future, this would also implythat the uptrend that started since March 2009 could be over too. We are eyeingthe RM0.08 and RM0.06 levels as the downside targets. The stock will be in asafe position if it manages to rebound back above the RM0.115 level by end ofthe week. The RM0.115 level is now the immediate resistance, followed by theRM0.13 level.