CUSCAPI’s share price had been taking a beating since it posted a 9M13 loss of RM1.8m. Within a short span of 3 weeks, the share price had lost as much as 31% to a recent low of 36 sen. Nevertheless, the 36 sen support level has shown some resilience, and a rebound now looks to be underway. Yesterday, the share price rose 3 sen to end the day at 41 sen on increased buying volume. Using the previous upcycles as a guide, the technical picture suggests that CUSCAPI could potentially extend its gains towards the 56 sen measurement objective. Note that the 56 sen target represents an upside potential of 37%, against a limited

downside of just 12% (assuming the 36 sen support holds).

 

Source: Kenanga