KUALA LUMPUR (Nov 29): OSK Retail Research said F&N Holdings Bhd's share price may trade higher after it broke above the short-term resistance level.

It said on Tuesday this consumer stock wasn't spared during the recent market selloff of August-September.

'Nonetheless, its long-term uptrend is still intact as the low of September is well above the low of December 2010,' it said.

OSK Research said that clear and strong buying interest lies near the low of September, just above RM16.00, from the volume spikes from August'October. In fact, it was followed by a strong rebound in early-November and the stock is back above the 200-day MAV line.

This is followed by a near three-week consolidation and the second leg of the rebound may have started, after it broke above the consolidation high of RM17.58 and this also violates the 100-day MAV line.

'Thus, look for the stock (F&N) to trade higher, and purchase can be made above the stop of RM17.36. The first target is RM19.00, the low of May and June and then the all-time high of RM19.80,' it said.

OSK Research said a break above RM19.80 could see F&N's share price testing RM21.00, based on the measured move of the December 2010'April 2011 rally.

The research house said a close below RM17.36 will invalidate the trade and the technical picture may turn weak.

'That will again see a break below the 200-day MAV line and the creation of lower highs. A close below RM15.86 will confirm the trend weakness,' it said.