Sunday, October 17, 2010

Coastal Contracts Bhd - Moving Up

Commodities have a bright future given the fact that further quantitative easing in US will ultimately lead to inflation. This means that there is further catalyst in the pipeline for commodity price to move up.

Companies like Coastal Contracts Bhd looks set to benefit from the commodity up tick. The stock price has been moving in a consolidation range and is now close to the RM2.40 resistance level. ADX is beginning to move up and this coincides with the gain in momentum.

MACD indicator has moved above its signal line and stochastic chart is still in bullish territory. I will look to buy the counter if it manages to break the RM2.40 resistance level. Support is at RM2.20 level.

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