CANONE has been trading within a sideways channel over the past two months. Having recently formed a “Morning Star” on last week (25-Jun-13), the share price now looks to be on-track to retest the RM3.60 channel resistance. The indicators are also supportive of a move higher. Hence, traders should watch for a decisive breakout above the aforementioned resistance level. Should this level be taken out in a decisive manner, CANONE would then have a clear path towards RM4.00 and potentially RM4.40 next. 

 

Source: Kenanga