CENBOND has been on an uptrend since late-2011. We like the stock from a technical perspective, given its obvious swing patterns and predictable 10-month cycles. In fact, a third cycle now looks to be underway. Further conviction can be drawn from the fact that the 20-day SMA has just completed a “Golden Crossover” with the 100-day SMA, and this implies a possible start of a strong rally. Trading volume also looks to be picking up, following a 10-month hiatus. Should history serve as a guide, we reckon that CENBOND could potentially rally towards the projected RM1.30 measurement objective (target 3 bids below this level). Traders who are looking to buy into the stock should also place a stop-loss at RM0.87, which is just below the trend line support.

 

Source: Kenanga