Rotary - Positive breakout suggests further upside

Breakout from key resistance. Rotary could be poised for more gains in the weeks ahead after breaking above the $0.82 key support-turned-resistance level on heavy volume recently. With this level already retested and successfully held yesterday, it could provide the platform for further advances.

More upside in the medium term. The MACD indicator is still trending up along the 10-month uptrend line, pointing to more upside possibilities in the weeks ahead.

Near-term consolidation pressure. However, the RSI is currently still showing overbought signals, hence Rotary could still face nearterm consolidation to relieve this pressure.

Initial resistance at $1.04. The immediate resistance is at $1.04 (gap in Jan ’08 and peak in Feb ‘08), breaking which, the next resistance is at $1.16 (key support-turned-resistance level).

Key support at $0.82. Below the $0.82 key support, the next support is pegged at $0.74 (5-month uptrend line), ahead of $0.66 (resistance-turned-support level).

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