CAELY has been riding on an uptrend for the past few weeks on media report that its new business segment in construction is gaining traction and expected to contribute positively to earnings in FY14. Technically speaking, the group is forming a bullish “Pennant” as the share price is converging. We believe the share price is reaching the ascending support line with potential to test the overhead Fibonacci and “Pennant” resistance @RM0.475 soon. Beyond that, we reckon CAELY could start another uptrend wave with short-term target @RM0.560, based on previous measurement objective. However, short-term trader should employ a

strict stop-loss @RM0.425.

 

Source: Kenanga