Allgreen - Breakout from key resistance suggest further upside

Positive breakout. Allgreen Properties is likely to reach higher after breaking out of the flag pattern and above the key support- turned-resistance level of $1.09 on heavy volume.

Upside momentum intact. With the RSI trending higher towards the overbought region and the MACD indicator signaling a strong bullish crossover recently, these seem to suggest strength in the current upside momentum.

Target price at S1.33-$1.38. Should the breakout materialize, we expect the target price at around $1.33-$1.38 (also happen to be a key support-turned-resistance level). Subsequently, we see the next resistance at $1.66 (peak in Dec ‘07).

Initial support at $1.09. Beyond the immediate support at $1.09, the subsequent supports are pegged at $0.87 (Jul ’09 low), followed by $0.63 (key resistance-turned-support level).

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