HAIO Stock Chart as at 16-08-2013

Dear valued members, 

You should be realistic about your goals. 

"In this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten." Peter Lynch 

Disclaimer: Please be informed that the following mentioned stocks / symbols are solely for the purpose of education only; it is neither a trading advice nor an invitation to trade. For trading advice, please speak to your dealer representative or remisier or financial adviser. Please buy at your own risk. Final decision is yours. 

The forth stock I wish to select for second half of 2013 is HAIO. 

My trading plan 
This stock is an up trending stock (daily, weekly and monthly chart). 
The stock price was hitting all times high (current) at 2.85 on 25/7/2013. Currently, the price goes through a correction and closed at 2.71 on 1/8/2013. 
Major resistance is 2.77 and 2.85. 
Major support is 2.49. 
Target price = 4.21. 
Margin of safety = 35% 
Potential profit gain = 54% 
Cut loss at 2.46 = 9.2% 
Risk reward ratio at 2.46 cut loss = 1 : 6.00. 
Target price recommended by RHB is 3.33. 

Technical Chart. 
A very nice up trending chart formed. A Cup and Handle chart was formed with pivot line at 2.77. The buy signal is at the Handle which is the reason I like this stock. There will be a good chance to hit our target price of 4.21 if the major resistance at 2.77 and 2.85 is crossed convincingly. A Cup and Handle chart formation is always a bullish chart. 

Disadvantage 
The volume is very low, it is very difficult to buy big. 

Strategy 
The best strategy is to buy it and walk away for a while. You need holding power on this stock. 

Conclusion 
Recommend to buy at 2.71 on 1/8/2013. 

Special note : 
Please note that Kcchongnz also selected this stock, hence I will not cover FA portion. My target price of 4.21 is based on my Technical Analysis calculation.

Stock Pick Challenge - [HAIO] by kcchongnz