Chart alert: Resources Prima Group’s potential chart break out

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Resources Prima Group (“RPG”) was actively traded with total volume done 17.8m shares yesterday. This was the highest volume last seen on 15 Apr 2015 which was the recent peak. It closed +0.004 to 0.135 on Friday. Day range was 0.130 – 0.137.

Based on Chart 1 below, RPG seems to be in a flag formation for a month. At $0.135, it seems to have breached the flag formation with an upside breakout. The flag formation should be confirmed if RPG can breach $0.137 on a sustained basis with volume. An upside breakout from the flag formation points to an eventual technical target of $0.215. This is an eventual technical target and may not be reached soon.Readers who are interested to know more about RPG can email me at crclk@yahoo.com.sg for the analyst reports. UOB analyst’s target for RPG is $0.295 and CIMB Securities has an unrated report. You can also refer to my writeup http://ernest15percent.com/index.php/2015/03/30/resources-prima-group-what-attracts-me/ which was published on 30 Mar 2015 when RPG was trading around $0.103.

Readers can also take note of RPG’s upcoming 4QFY15 results to be released next week.

Supports: $0.134 / 0.130 – 0.132

Resistances: $0.136 – 0.137 / 0.142 / 0.149 – 0.151

Chart 1: RPG’s potential chart breakout

 

 

 

 

 

 

 

 

 

 

 

 

Source: CIMB complimentary chart as of 22 May 15

P.S: This is an updated version to the writeup which I posted yesterday afternoon. I have done some minor amendments such as update the chart with end of day chart and price etc.

Disclaimer:

The information contained herein is the writer’s personal opinion and provided to you for information only, and is not intended to, or nor will it create/induce the creation of any binding legal relations. The information or opinions provided herein do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of this information. Investments are subject to investment risks including possible loss of the principal amount invested. The value of the product and the income from them may fall as well as rise. You may wish to seek advice from an independent financial adviser before making a commitment to purchase or invest in the investment product(s) mentioned herein. In the event that you choose not to do so, you should consider whether the investment product(s) mentioned herein are suitable for you. The writer will not, in any event, be liable to you for any direct/indirect or any other damages of any kind arising from or in connection with your reliance on any information in and/or materials appended herein. The information and/or materials are provided “as is” without warranty of any kind, either express or implied. In particular, no warranty regarding accuracy or fitness for a purpose is given in connection with such information and materials.

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