SUMATEC rose 2 sen yesterday to close at 30 sen, amid news that company is expected to start work on the Rakuscheknoye O&G field by mid-January 2014. Consequently, the share price has now confirmed a bullish “Morning Doji” candlestick pattern, potentially heralding the start of a rebound. While the MACD and RSI indicators have yet to reflect a shift in momentum (from bearish to bullish), we note that the Stochastic oscillator has begun to hook up. This indicates that an upcycle is already in the making, and as such we anticipate the share price to extend its gains towards 37 sen (R1) next.

 

Source: Kenanga