We like DUTALND from a technical perspective, as the share price had been exhibiting clear cyclical patterns over the past two and a half years. From trough to peak, the share price typically gains between 40-60% in the past three cycles, with the most recent being a run up from 44 sen to 62 sen (Jun-Oct 2012). Should past patterns be an indication of future direction, we believe that DUTALND is due for the next leg of the fourth cycle. In fact, the upcycle may already be underway, and this follows a 10% run up this week alone (44 sen to 48 sen). Trading volume has also picked up in recent days, and the share price looks to be retesting the 100-day SMA resistance (a breakout had been an accurate buy-signal in the past).

 

Source: Kenanga