Despite the disappointing 2Q14 earnings, HAIO’s share price had barely lost any ground. Analysts were expecting a better set of results in 2H14, as good responses were received in the MLM segment after the company switched their marketing strategy to focus on “small ticket” items. In fact, there seems to be some buying activity on the upward-sloping channel support (RM2.54-RM2.60 range), with the MACD and Stochastic indicators also showing slight improvements. From here, the technical picture suggests that HAIO is mildly biased to the upside and we reckon that the share price could potentially stage a retest of the RM2.85 resistance over the next few months. Based on yesterday’s closing price of RM2.60 (+3 sen), this implies an upside potential of 10% against a 4% downside assuming a stop-loss is placed at RM2.51 (3 bids below RM2.54 support).

 

Source: Kenanga