Earlier this month, LBS surged to an 8-year high of RM1.14. However, the gains were short lived, and the share price had since surrendered more than 15%. This was despite the recent announcement (10 April) that the company had signed a conditional sales and purchase agreement to dispose its entire equity interest in two of its subsidiaries for RM657.7m in cash and shares. Looking at the LBS from a technical perspective, the share price appears to have found some support at the 93 sen “Ascending Triangle” trigger line. In fact, LBS managed to record an intraday rebound after briefly visiting the aforementioned support level yesterday. So long as this level continues to hold out against selling pressure, we reckon that the overall bullish outlook would remain intact. At this level, we believe traders have been given yet another opportunity to buy into the bullish “Ascending Triangle” pattern towards the RM1.26 measurement objective.

 

Source: Kenanga