Chart : Daya Material daily chart as of Aug 13 2014 (source: ChartNexus)
Daya material today broke is horizontal resistance line at 34.5 sen to close at 35 sen with significant volume. It may be a bullish sign for the counter to rebound from its slid from peak of 45 sen to 28 sen. The disposal of shares in open market by one of the major shareholders, Dato' Mazlin, is believe to be the main contributor to the slid. But the stock has seen rebound from the low of 28 sen to close at 35 sen today with just 2 days before the IPO of Reach Energy, a SPAC that Daya hold 1.74% of the enlarge shareholding. The public portion of the Reach IPO has been oversubscribed by some 42 times, it is reasonable to say that the opening price of the stock should be substantially higher than the IPO price. With all this factor in, if Daya able to hold on to its 34.5 sen horizontal line, I think there is a good chance it will ride on the Reach IPO's momentum to stage a significant rebound and may be looking to challenge its previous peak of 45 sen. Having said that, Dato' Mazlin still has some 117 million shares of the counter and who knows when he will decide to sell again. Still Daya is looking to 'Reach' for rebound.
AiryA
technical indicators showing buy signals, with a number of Rs.. ;)
2014-08-13 23:02