Having retested the RM1.18 resistance on multiple occasions over the past two years, SBC finally broke above this level last week to confirm a bullish "Ascending Triangle" pattern. The bullish move marks a continuation of the uptrend, and we believe that the stock has further upwards distance to go. In fact, the "Ascending Triangle" pattern suggests a measurement target price of as much as RM1.76 for a decent 49% upside, while the downside is limited to RM1.18 (place a stop-loss between RM1.10-RM1.15) Any retreat to the RM1.18 trigger line/ resistance-turned-support should be viewed as a buying opportunity-this happened earlier in the week.

 

Source: Kenanga