IJM kick started the week with strong gains, following wire news reports that the company is keen to bid for the RM2b Kerteh-Kuantan rail link development. The share price advanced 20 sen to settle at the day's high of RM5.45. IJM's share price has broken out of the crucial RM5.25 resistance level, having retested this level on six prior occasions. The technical picture suggests an end to the sideways consolidation phase, and we reckon that this could be a precursor to a major bullish trend reversal. The 20-, 50- and 100-day SMAs have also completed a "Golden Crossover" recently, while the MACD is showing signs of "Bullish Convergence". Hence, traders should buy on weakness between RM5.22-RM5.45, with a technical target price of RM5.97 (4 bids below the RM6.01 

measurement objective). A stop-loss of RM5.19 should also be placed.

 

Source: Kenanga