Post elections, TEBRAU had rebounded from a month-long oversold trend after forming a bullish “Engulfing” candlestick pattern at the upward sloping trend-line (6 May 2013). However, the share price met with some resistance at the RM1.56 April high (notice the sideways consolidation in the past week), before finally managing a breakout yesterday. With this crucial resistance now taken out, we reckon that an accelerated uptrend is in the making. Similarly, the MACD indicator is  still bullish, and we expect follow-through momentum to carry the share price towards the RM1.96 measurement objective (target 3 bids below this level). Meanwhile, strong support should be present at the RM1.56 resistanceturned-support though we suggest that traders place a stop-loss further down at RM1.47. This implies a potential upside of 19% versus downside risk of 9.2% @ RM1.47.

 

Source: Kenanga