KUALA LUMPUR (April 9): Rakuten Trade said SkyWorld Development Bhd may extend its upward trajectory after breaking out from the pennant pattern on Monday.

In a technical view note on Tuesday, the research house said that given the supportive technical reading in the relative strength index along with improving exponential moving averages (EMAs), coupled with the positive cross of its 20-day EMA above the 50-day EMA few sessions ago, this bullish crossover has enhanced the upward momentum.

“We expect the rising momentum to steer the stock to trend higher and test the next level of resistance of 67.5 sen (R1), followed by 74 sen (R2).

“On the downside, stop-loss is set at 57 sen, below the 50-day EMA,” the house said.