Having constructed a strong floor at the RM1.17 level,Johore Tin's upward momentum is picking up this week. This type of technicaldevelopment typically signals an extension of the previous trend. We advisetraders to accumulate its shares between the current level and yesterday'sopening point of RM1.28. Its RM1.72 historic peak is pegged as the upside target.Traders should consider cutting loss should the stock violate the RM1.17level. 

Johore Tin experienced a sharp run-up  in its share price during the Feb-March 2012period. The stock then started consolidating sideways within the RM1.17-RM1.34range after hitting the RM1.34 peak. However, its upward momentum has startedto pick up since Monday, which saw the share price rebounding strongly off theRM1.17 level, and the stock closed at RM1.37 yesterday.  Judging from the strong rebound in its trading  volume yesterday, it seemsthat the stock's consolidation phase for the Feb-March 2012 rally is alreadyover.

Hence, we advise traders to accumulate shares between thecurrent level and the RM1.17 level. We are eyeing its RM1.72 historic high asthe upside target. The RM1.17 strong support floor would be the obviouscut-loss level as a break below it would trigger a major breakdown.

Prior to reaching our RM1.72 price target, an immediateresistance can be seen at the RM1.37 level. To the downside, look for animmediate support at the RM1.28 level, followed by the very strong RM1.17support level. The near-term technical outlook of Johore Tin is now alignedwith  the bullish bias and the daily RSIat the 74.6 pt-level. Considering the RSI is still below the 88-pt peak reachedin March, there is still room for further upside extension.