JOBST has been on a losing streak since the new year, as investors took the opportunity to take profit after an impressive run-up in December. However, recent news (14-Jan) that JOBST is buying the remaining 40% stake in PT Indonesia has stirred fresh interest in the stock, with the share price now forming a near-term bottom at the channel support. For the day, the share price was up by 5 sen to RM2.32 on increased volume. The Stochastic and RSI indicators have also hooked up to signal the start of another up-cycle. Should follow-through buying continue today, a more convincing buy signal could be generated, and we would then expect the share price to stage a retest of its RM2.56 all-time high fairly soon. Beyond this level, JOBST would have a clear path towards the next resistance level of RM3.07.

 

Source: Kenanga