Oldtown experienced a major breakout last Friday. Priorto  this, the stock  had been consolidating  at prices  between RM1.20 and RM1.35 since the beginningof the year. Hence, the breakout basically signals the end of the consolidationphase. Nevertheless, because of the strong 9% gains recorded, there is apossibility that the stock may consolidate these gains first before climbinghigher again. We advise traders to accumulate shares between RM1.35 and thecurrent level. Considering the significance of the breakout, we expect thestock to achieve another upside of 15% or so and therefore, we peg RM1.60 asthe immediate upside target. Consider cutting losses if the price violates theRM1.35 support floor. 

Prior to last Friday, Oldtown had been consolidating betweenRM1.20 and RM1.35,  after rallying in theperiod between Sept 2011 and Jan 2012. Last Friday's price action saw the violation of the consolidation zoneand basically, this signals the end of its consolidation phase.

The breakout, which was accompanied by strong volume, looksconvincing too. Hence, we advise traders to accumulate shares  at prices between  RM1.35 and  the current level. Nevertheless,  do expect its share price  to take a breather considering last Friday's9% gains are rather strong. We are anticipating further gains of about 15% fromthe current level, judging from the momentum of the breakout and therefore, weare eyeing the RM1.60 level as the upside target. Traders would want toconsider cutting losses should its share price retrace back below the RM1.35level.

 At below the RM1.35level, look for the RM1.25 level as the next support, followed by the RM1.20level. To the upside,  traders can expectresistance at the RM1.50 psychological level.