REDTONE’s technical picture looks interesting after the share price violated the 8-week congestion zone between RM0.685-RM0.745 as the market speculated on possible release of positive financial results, expected to be released soon. Chart-wise, although the share price remains in the congestion zone, key indicators such as RSI and Stochastic are positively biased with average high volume traded yesterday. We suggest trader to watch out for this stock as this could be the early sign of a potential upside channel breakout. Should that be the case, the overhead resistance @RM0.780 will be the next resistance to break through before reaching its all-time high @RM0.860 (26/7/13). Meanwhile, strict support is pegged at RM0.715. 

 

 

Source: Kenanga