3A: Ripe for a rebound as technicals are on the mend  

• Since peaking at 52-wk high of RM1.54 (28 June 11), 3A share prices have been trapped in a downtrend channel to as low as RM1.07 on 4 Oct 11 but there are signs of a potential reversal. Given that technical indicators are grossly oversold and with early signs of bottoming up, share price could trend higher to stage a challenge for the 50-d SMA at RM1.17 and a crucial resistance at RM1.20 (200-d SMA). A strong breakout of RM1.20 will spur prices higher to stronger resistances at RM1.30 (downtrend channel and weekly upper Bollinger band) and RM1.40 (50% FR-weekly). Supports are RM1.09 (weekly lower Bollinger band) and RM1.07. Cut loss below RM1.05.

Source: Hong Leong Investment Bank Research - 19 June 2012