ASUPREM’s share price was on a downwards trend since September 2012. However, we believe that the stock could have bottomed-out, and the share price looks set for further gains. Yesterday, ASUPREM’s share price rose 1 sen to settle at 25 sen. This marks a third straight day of gains to form a bullish “Three White Soldiers” candlestick pattern. The 20-day SMA has also completed a bullish “Golden Crossover” with the 100-day SMA, and we reckon that this outweighs the effects of the RSI which is deep within the overbought territory. Going forward, we expect the share price to gradually make its way towards the November high of 28 sen where strong resistance would likely emerge. Should this level be taken out as well, ASUPREM would then have a clear path towards 39 sen.

Source: Kenanga