P&O has been trading within a year-long uptrend channel before finally managing a breakout yesterday. Chart-wise, the stock rose 12 sen to RM1.72 amid a surge in trading volume in the afternoon session. In fact, P&O has now broken above its 7-year high into an uncharted territory. The decisive breakout offers strong conviction on our bullish view and based on Fibonacci projection, we reckon that the stock could potentially extend its gains towards the RM1.93 and RM2.11 resistance levels over time. Nevertheless, we suggest that traders adopt a buy on any weakness strategy towards the RM1.62 support (target buy at  RM1.62-RM1.67). Should our targeted entry level be triggered, traders should then aim for a 14% upside at RM1.90 (3 bids below RM1.93 resistance). A stop-loss of RM1.54 should also be placed.

 

Source: Kenanga