SOP has been unrelentingly bullish recently after the share price broke out from a three-month congestion zone and rose 55 sen in two days to RM6.50 after the Sarawak State Financial Secretary has emerged as a substantial shareholder in Sarawak Oil Palms Bhd with a 6.8% stake, according to media report. We feel the stock is currently overbought judging from the bullish reading of RSI. Hence, we believe investors may likely take some profit around the RM6.55 level (Fibonacci resistance). In mid-to-long-term view, we believe the share price is likely biased to the upside, with RM7.00-RM7.04 as the strong overhead resistance. As for the downside, buying support should emerge between RM6.00-RM6.24. 

 

Source: Kenanga