On Monday, a broad-based foray into the uncharted territory was witnessed among Malaysian stocks small and large. Among the notable gains, SKPETRO advanced 40 sen to RM3.45. Having retested the RM 3.17 resistance on multiple occasions over the past 7 months, SKPETRO finally broke above this level yesterday to form a bullish “Ascending Triangle” pattern and we believe that the stock is poised for further gains ahead. The key indicators have also turned bullish as a result of yesterday's strong move; with the MACD line completing a positive Signal line crossover to give us a 'buy signal'. Traders who are looking to buy into the stock should peg their target at RM3.84 with a stop-loss of RM3.14.

 

Source: Kenanga