FACBIND has been trading within a mild-uptrend channel since early of the year. However, the share price broke above the  trend channel resistance to close at all-time high @RM1.34 yesterday, and this was supported by strong buying volume ahead of company’s 3Q13 earning release (due in the coming days). We believed the definitive breakout yesterday could be a prelude to an accelerated uptrend for the stock, and further impetus could be drawn from the key technical indicators which reflect a pick-up in buying momentum.  As such, we suggest a ‘technical buy’ on the stock with a RM1.57 target (representing 3 bids below the measurement objective). Correspondingly, a stop-loss should be placed at RM1.17.

 

Source: Kenanga