Despite the weakness in the broader market, buying interest in SAUDEE (formerly known as SINARIA) has been on the rise since the company announced its 2Q14 earnings on the 24th Jan 2014 which showed a 13% increase YoY. Yesterday, SAUDEE was up 2.5 sen at 30.0 sen, against the FBM KLCI’s 25.20-point drop. The series of bullish moves over the past few days had caused the share price to break out of a “Triple Bottom” chart pattern, and this indicates that the share price is poised for a bullish reversal. Based on the chart formation, we expect SAUDEE to gradually make its way towards 37 sen in due course. Any retracement towards the 27.5 sen resistance-turned-support should be viewed as an opportunity to buy on weakness.

 

Source: Kenanga