ISOTeam – On the verge of chart breakout

ISOTeam has been testing the resistance of $0.400 – 0.405 on six occasions since 20 Jan 2014. There was a spike in RSI and ADX levels as the share price tested $0.400 – 0.405 on 9 & 12 May. RSI went to an all time high of 77.4 on 9 May. For the next four trading days (14 – 19 May), the share price consolidated around $0.380 – 0.405 and closed at $0.385 today (Monday). Due to this consolidation, ADX and RSI have fallen to more comfortable levels. RSI closed at 52.0 today.
Based on Chart 1 below, ISOTeam remains on an uptrend, supported by the rising moving averages and the rising trend line. Based on my personal observation on chart and price movement, it seems to be on the verge of a potential break out. Measured technical target price on a successful breakout (if accompanied with follow through buying and volume expansion) is around $0.450 which also coincided with the 52 week high.
Support: 0.375 – 0.380 / 0.370 /
0.360 – 0.365
Resistance: 0.400-0.405 / 0.415 / 0.430
/ 0.440 / 0.450
Chart 1: ISOTeam remains on an uptrend, on the verge of a potential break out
Source: CIMB itrade 19 May 14
Interesting developments in April and May
ISOTeam ended their moratorium in January. In April and May 2014, based on my manual observation, there were two days (namely, 16 Apr and 9 May) where there were married trades. These married trades were significant on two fronts. Firstly, the married trades were mostly done at prices which were higher than the last prevailing price. For example, on 9 May, married trades amounting to about 9m shares changed hands with the bulk of it being done at $0.410 – 0.420. As a result of these transactions on 9 May, Singapore Tong Teik (Private) Limited emerged as a substantial shareholder holding 7.5m ISOTeam shares (cost is $0.420), or 6.4% of ISOTeam. Secondly, the volume of the married trades was significant as the total volume of shares transacted on 16 Apr and 9 May amounted to 6.0m and 10.5m respectively. It was noteworthy that the average 30D and 100D volume for ISOTeam only amounted to 868,000 and 478,000 shares respectively.
Against the backdrop of a (likely) positive chart setup and coupled with the above interesting developments, odds are higher of a chart breakout above its six times tested resistance 0.400 – 0.405. Measured technical target price on a successful breakout (if accompanied with follow through buying and volume expansion) is around $0.450 which also coincided with the 52 week high.

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