Cheap valuations have prompted bargain hunting activities on SUNWAY with the share price now 13% above its RM2.52 low just 2 months back. Yesterday, SUNWAY closed at RM2.85 and we note that the share price has also broken above its major downtrend channel resistance, which spanned as far back as May last year. In fact, SUNWAY is now in the midst of retesting the “Double Bottom” trigger-line at RM2.85 (R1). Based on the bullish momentum indicators, chances are high that this crucial resistance level would be taken out in a decisive manner. Should this be the case, we would then expect a further move towards the “Double Bottom” measurement target of RM3.15.

 

Source: Kenanga