Conviction Buy- List

With the market firmly in an up trend, I think its time to go shopping for some deals..

1. My number 1 pick has got to be Coop Bank (COOP).

   

   I mean look at that beautiful cup and handle pattern.. The stock has a nice rounded bottom, has broken out above that Sh. 10.00 price resistance (which is now support) and it is now consolidating forming a base (handle). COOP is trading comfortably above its 50 and 30 day moving averages and since busting above the 10 day EMA in late May, COOP has simply been on an uproar. The beautiful thing about this stock is that there is no overhead supply since it just IPOed recently. This stock is ready to rumble. Volume has been picking up nicely in this recent move up. I love this stock and am a huge buyer here.. Giddy up!!!!

    
    

2. Centum Investment Company Ltd (ICDC)

   

   Absolutely love this chart, looks like we comfortably bust through the 200 day moving average. After two days of rest, the stock has again started moving up. Nearest resistance is at Sh. 20.00. I think we get there In very short order. The Sh. 20 level is a significant resistance point and should we bust through this, then my price target will be Sh. 30.00. ICDC is sporting a nice rounded bottom and we are just about to get a bullish 50/200 MA cross which in traditional Technical Analysis is a buy signal. Am a buyer here, am convinced that this move is in its initial stages . Yes I may have missed catching this baby at the march lows, but believe me when I tell you, this move higher has just began…

    
    

3. Mumias Sugar Company (MSC)

   

   MSC has been performing well recently and was actually the best performing stock for the month of June. Recent price action has brought it right past the 200 day moving average and prices seem to be consolidating around this level. This stock could easily see double digits in the next couple of months. I like the increase in volume which speaks to the mounting buying pressure.

    
    

4. Access Kenya (ACCS)

   

   This stock is a favorite of many. The thing that bugs me about it is the lack of participation (volume) during this leg up. The stock seems to be in a strong uptrend and we did get a bullish 50/200 MA cross last month. ACCS has had an amazing run and may be due for a pullback soon. In the event that we do get a pullback, I expect the rising 30 day moving average to provide support. Am a buyer of ACCS on any pull back. My initial price target is Sh. 32.00

    
    

    
    

5. Barclays Bank Ltd (BBK)

   

   Barclays seems to be consolidating around the Sh. 55 level. It should be noted that that price level acted as significant resistance earlier this year and it makes sense that the stock should stall at this level. The good news is that we are firmly above the 200 day MA and we recently had a bullish 50/200 MA cross. There is overhead supply at the Sh. 60 level and I think that the stock is forming a base around current price levels in preparation of a move above the Sh. 60 price level. Once this level is broken, I see BBK trading above Sh. 70.00.

    
    

   So there you have it, my top five buy candidates. I will be buying these babies ASAP…

   Please note that these are not buy and sell recommendations, these are simply my thoughts and analysis.

    
    

   Happy trading…

    
    

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~ by Ade on July 2, 2009.