Packaging companies were among the top gainers yesterday (DAIBOCHI+7.3%, BRIGHT +19%, ADVPKG +5.8% and TOMYPAK +6.1%). Of particular interest to us, TOMYPAK broke out of its channel resistance following its 8 sen rise to RM1.38. Indicator-wise, the MACD has completed a Signal line crossover as a result of the bullish move, and this indicates that momentum is increasingly bullish. Similarly, the 14-day Stochastic and RSI indicators have also hooked upwards into the overbought territory to reflect the start of an up-cycle. Should follow-through buying be sustained, we reckon that the share price could potentially make its way towards RM1.52 next. Meanwhile, support should be present between RM1.30-RM1.35 where the previous highs are located.

Source: Kenanga