Yesterday, ULICORP confirmed a “Bullish Pennant” formation with a 7 sen advance to close at RM1.10. The bullish move signals the resumption of the prior uptrend after a brief 2-month pause. Trading volume has also shot through the roof, while the MACD has crossed over with the signal line to reflect an increase in buying momentum. From here, we reckon that ULICORP could potentially extend its gains towards RM1.28 (chart measurement) and suggest that traders take profit 3 bids below this level (RM1.25). Meanwhile, a protective stop-loss should also be placed just below the RM1.00 support level at 98.5 sen.

 

Source: Kenanga