Post Bonus issue and dividends at the end of December, GDEX had retreated as much as 28% from its RM1.49 high to a recent low of RM1.07. Nevertheless, we see a silver lining now, after the share price rallied 8 sen (to RM1.18) on high volume yesterday. With the technical picture also sporting: (i) clear cyclical patterns, (ii) a healthy uptrend and (iii) improving momentum indicators, we believe that GDEX is poised to extend its gains from here. Expect follow-through buying today, and an eventual move to retest the recent all-time high of RM1.49 (R1) fairly soon. Meanwhile, support should be present at RM1.16 (S1) and RM0.96 (R2).

 

Source: Kenanga