Ariantec may trade  lower  after forming negative candles in the past 2days. The stock was has moved  favourablyafter it was highlighted 2 months ago, considering that it has breached our targetof RM0.08. However, it appears that the stock is facing selling pressure at thepsychological RM0.20. The negative candles of the  'Shooting Star' and 'BearishEngulfing' in the past 2 days indicate selling pressure.  The high volume that accompanied the candlesalso give rise to the possibility that distribution was made. Thus, anaggressive trade may choose to liquidate positions just below RM0.20 inanticipation of lower prices. A conservative trade may exit on a close belowyesterday's low of RM0.17 instead. The price target is the prior high ofRM0.135, also a Fibonacci retracement level of the  4-day rise. Further supportis at RM0.10, where a violation may signal the end of the 2-month uptrend. The weakbias will be neutralized should the stock close above RM0.20. This should leadto a continuation of the rally. If so, look for the stock to test the recent intraday high of RM0.25 and thereafter, theround figure of RM0.30.

M3 may trade higher after breaking the long-term resistancelevel. The stock is on a solid uptrend for the past year, as evidenced from theseries of higher lows.  Nonetheless, itspent the last 4 months consolidating the gains. The consolidation is now overwith the expected continuation of the upward movement, more so when it brokeabove last year's high of RM0.28 yesterday. It even closed above  the  5-year resistance level of RM0.30,highlighting the strength  of the  upward bias. The breakout looks good too asit occurred on a 'Long White' candle and accompanied by a volume spike. Thus,the upward continuation is expected and purchases can be made above RM0.30 witha close below RM0.28 as a stop loss, while a conservative trade may chooseRM0.25 as  a  stop instead. The price target is the early2007-high of RM0.40 and a strong move may even see the test of RM0.55 ' thehigh of 2006. The trade may not work out should the price close below RM0.25 and if this happens, it would take a whilebefore a test of RM0.30 could  take placeagain.

Source: OSK188