Brooke Asia Limited (formerly known as Latitude Tree International Group) - a 100%-owned subsidiary of Latitude Tree Holdings reported a set of sterling 1H14 results last Friday, which sparked tremendous buying interest yesterday. In fact, from the technical viewpoint, the stock has just broken out of its resistance of 2.25/26 convincingly to form a “Bullish Pennant” chart pattern. Readings from the key indicators such as MACD showed that the stock is poised to enter another bullish run. Based on the chart pattern, we expect the share price to climb towards the RM3.12 measurement objective over the next few months. We suggest that traders looking to buy into the stock should aim to take profit 3 bids below this targeted level at RM3.09, while employing a stop-loss at RM2.23 (3 bids below RM2.26 support).

 

Source: Kenanga