Straco (technical)

Straco: Maybank-KE has a Technical Buy call on Straco. The house notes that Straco’s rise from its Dec ‘09 major Wave 2 low of $0.10 took the form of a bullish weekly Elliott Wave 3 surge to its all-time high of $0.67 (Apr ‘14). Against the volatile and weaker movements of the FSSTI, this stock has moved up and surpassed the index on the upside. An ability to surpass $0.67 would mean further upside for the stock. Support areas indicated are very firm, while some selling at the resistance level may cap its initial rise. Its indicators are mainly quite firm, with the positive weekly CCI, DMI, MACD and Oscillator depicting further strong buying pressure. 18 and 40 simple moving averages (SMA) also depict a very strong triple timeframe uptrend for the daily, weekly and monthly charts. Therefore, the chart evidence suggests that investors have been buying the stock over the last 52 months. The house suggests buying this stock on all dips. Maybank-KE tips key support levels at $0.60 and $0.49 and key resistance levels at $0.61 and $0.67.