In early December last year, CAELY announced that it had secured two construction projects totaling RM97.2m from Koperasi Peserta-Peserta Felcra Malaysia Bhd. While the news resulted in a single-day spurt in its share price, the impact was short-lived after CAELY failed to overcome its 47.5 sen resistance. It wasn’t until yesterday that CAELY finally managed a decisive breakout above this resistance level. Its share price shot up 4.5 sen for the day to close at 49 sen. Trading volume was high and the bullish move had confirmed a “Bullish Flag” pattern to signal a continuation of the prior uptrend. Based on the chart formation and bullish indicators, we reckon that CAELY is poised to extend its rally to 65 sen next. Traders who are buying into the stock should target 3 bids below this level (at 62.5 sen) as well as placing a protective stop-loss just below the 42 sen support level at 40.5 sen.

 

Source: Kenanga