First Resources - Potential breakout at key resistance

More upside ahead. First Resources could be poised for more upside in the weeks ahead. It has not only managed to break above the upper boundary of its 4.5-month uptrend channel but also closed above the key support-turned-resistance level of $0.935 (last seen in early Aug '08) on very high volume.

Still indicating overbought signal. However, we note that the RSI is still indicating an overbought signal, suggesting that a nearterm correction could take place soon. As such, we advocate waiting for a successful retest of this new resistance-turned-support level.

Initial resistance at $1.05. Should there be a confirmation of the breakout, we expect the stock to test $1.05 (support-turnedresistance), breaking which, the next resistance at around $1.13 (support-turned-resistance).

Immediate support at $0.935. Below the immediate support at $0.935, the subsequent support is pegged at $0.845 (minor trough in Aug '09 and centre Bollinger Band), ahead of $0.74 (resistanceturned- support and lower boundary of 4.5-month channel).
But given the current market sentiment... so not too sure.......

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