Following its quarterly result announcement last Friday, BHS share price surged 20 sen for the last two days boosted by its strong 1H14 net profit of RM4.74m (+44.5% YoY). From a technical perspective, the stock has staged a breakout from a “Bullish Flag” chart pattern, hinting that the share is poised to enter another round of rally after the one seen last year. Indicator-wise, key indicators such as MACD and Stochastic are showing bullish signals, while average volume is picking up. We expect the share price to climb towards the RM2.07 measurement objective and suggest that traders looking to buy into the stock should aim to take profit 3 bids below this targeted level at RM2.04, while employing a stop-loss at RM1.36 (3 bids below RM1.39 support).

 

Source: Kenanga