SPSETIA’s share price gapped up 10 sen (RM3.60) at the opening bell and extended its gains to a high of RM3.80 before settling at RM3.72 (up by 22 sen for the day). In fact, the stock managed a decisive punch-through above its RM3.62 channel resistance, underpinned by trading volume, which was at a six-month high. The key indicators (MACD, Stochastic and RSI) are also bullish, and have yet to show signs of exhaustion. Hence, we believe that the stock could gradually make its way towards RM3.97 next. We view any weakness towards the RM3.62 resistance-turned-support to be a buying opportunity, though traders could also consider

buying into the stock now. For this trade, a stop-loss of RM3.56 should be placed.

 

Source: Kenanga