FIMACOR’s share price rallied after it reported an impressive jump in 3Q14 earnings (+69% YoY) on 20th Feb, but had since consolidated over the past five trading days. Yesterday, the share price staged a remarkable movement yet again, gaining 26. 0sen to close at RM7.90. From a technical perspective, FIMACOR has broken out of a “Bullish Pennant” pattern which indicates a continuation of its prior uptrend. Buying interest has picked up and key indicators are in favors of further upside. Based on the chart pattern, we expect FIMACOR to move towards the measurement objective of RM8.88. Traders looking to buy into the stock should aim to take profit 3 bids below this level at RM8.85, while also employing a strict stoploss level at RM7.50.

 

Source: Kenanga