FAVCO rose 11 sen to settle at RM3.15 on increased buying volume yesterday. Notably, FAVCO has now broken out of its 8-month long “Symmetrical Triangle” chart pattern to start a new uptrend. The key indicators have also shown some improvement, with the Stochastic and RSI indicators rising sharply, indicating that that the bias is now firmly to the upside. As such, we believe that the stock is now issuing a strong buying signal for it to retest its previous high of RM3.66. Beyond the aforementioned resistance, FAVCO would have a clear path towards RM4.46 (the symmetrical triangle measurement target) next.
 

Source: Kenanga