On a terribly bad day, like today, one would be very surprise that a stock made a strong upside move. One such stock is LBS. There were persistent rumors over the past few weeks that LBS has found a buyer for its Zhuhai land. Could this be the reason for the current price rally?

Technical speaking, the stock looks poised to test its downtrend line at the resistance of RM0.55 this morning. The indicators are generally positive, except for the price movement to confirm the breakout. As at 3.50pm, LBS broke above the RM0.55 resistance & was trading at RM0.56. With this upside breakout, LBS could rally to test its immediate horizontal resistance at RM0.62.


Chart: LBS's daily chart as at June 7, 2010_10.00am (Source: Quickcharts)

For those who are very nimble & brave, LBS could be a trading BUY.