BENALEC’s share price has been stuck within a mild uptrend channel. While there had been a little impetus to drive the share price up in recent months, we reckon that trading opportunities exist within the trend channel itself. Between the channel support and resistance, there is a decent 15 sen range (RM1.15-RM1.30) with enough volatility to play around with. Yesterday, BENALEC lost 1 sen to settle at RM1.18. The share price is now drawing closer to the RM1.15 channel support & medium term trend line, and we reckon that traders should keep a lookout for a quick reversal candlestick (eg. Doji, Hammer, Bullish Engulfing etc) from here. Indicator-wise, the 14-day Stochastic indicator has entered into oversold levels, and a re-emergence above the 30-point mark could also present an alternate buy signal.

 

Source: Kenanga