Earlier this week, BOILERM staged a rebound from RM1.15 after confirming a bullish “Morning Doji Star” candlestick pattern. However, it wasn’t until yesterday that the stock gave us a strong buy signal. At RM1.34, BOILERM was up by 8 sen to form a bullish “Marubozu” candlestick. More importantly, the share price has broken out of its RM1.15-RM1.30 consolidation phase. This confirms the “Bullish Flag” formation on the daily chart, and we believe that this chart pattern signals a resumption of an uptrend. The MACD is also indicative of a shift in momentum from neutral to bullish, and we reckon that BOILERM could potentially extend its gains towards the RM1.47 “Flagpole” measurement objective next (target RM1.44). Correspondingly, support can be found at RM1.25-RM1.30, where a stop-loss should be placed 3 bids below theselevels (RM1.22).

 

Source: Kenanga