Earlier this week, L&G broke out of the previous 46 sen high amid growing buying interest strong buying interest. As a result of the bullish move, we believe that a major trend reversal is on the cards. Indicator-wise, the MACD is showing signs of bullish convergence, and this shows that buying momentum is picking up. Note that the short-term 20-days SMA line has also crossed above both the 50- and 100-day SMA which reaffirms our positive view on the stock. Based on a measurement objective, we believe 

that L&G could potentially grind higher towards the 51 sen high (August 2012) and even further up at RM0.61 (target 3 bids  below this level at 59.5 sen). This implies potential upside of 26% against just 9% of downside should a stop-loss be placed at 43 sen (6  bids below 46 sen support).

 

Source: Kenanga