QL Resources Berhad's ("QL Resources") share price has been stuck in range-bound mode for the past eight months to form a large "trading rectangle" which spanned 27 sen. This chart pattern marks a sign of indecision between the bulls and the bears after the strong run-up in the share price at the start of the year. Earlier this  week, QL Resources formed a bullish "Umbrella" reversal candlestick after testing the RM3.05 support on the daily chart. The candlestick pattern was confirmed with a rebound accompanied by the rising Stochastic indicator, which signaled the start of a short term upward cycle. The RSI has also inched up after briefly grazing the oversold territory. We believe  the share price may extend its gains towards the cluster of moving averages at RM3.20 before reaching the rectangle resistance at RM3.32 - our target objective.

Source: Kenanga