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Amara: Will It Remain Strong During Market Pullback?
Trend Spotting | 31 May 2013
By: Robin Han
Articles (102) Profile

Amara Holdings has been strong for almost a year with a nice uptrend. For the past one month, Amara pulled back slightly and formed an inverse head and shoulders pattern. Furthermore, it managed to hold well and even recorded a new high despite a recent drop in the STI (Straits Time Index). This is a sign of strength.

Fundamentally, Amara’s 1Q13 revenue increased 51.7 percent while cash generated from operations almost doubled, indicating that its business is gaining momentum. The fundamental information has also confirmed the strength from the technical aspect.

Normally, an inverse head and shoulders pattern will lead to a nice upward movement. The stock is likely to rally further if it does not drop below the important support level and continue to maintain its inverse head and shoulders pattern.

One may consider buying on weakness during a pullback.

Monthly Chart Of Amara Holdings

Robin Han is a Ph.D in Department of Chemical and Biomolecular Engineering and has got a solid foundation in the financial markets.

Please click here for more information about this author.

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