Expectations that UNISEM may swing back into profitability this year had caused the share price to run up at the start of the month. However, poor market sentiment in the broader market subsequently erased most of its earlier gains. Yesterday, the share price finished at 92 sen (+0.5 sen), a full 21 sen below its RM1.13 high registered on the 9th of Jan. That said, the share price is beginning to show signs of bottoming out, with a “Hammer” reversal candlestick taking shape at the downward sloping support level yesterday. Improving signals from the MACD and Stochastic indicators have also led us to believe that a rebound may be on the cards. From here, we expect UNISEM to claw its way back towards the 98 sen support (R1) and should this level be taken out, expect an eventual retest of January’s RM1.13 level high (R3).
Source: Kenanga