Some three months back, we recommended a “Technical Buy” on YOCB (91 sen, report dated 6th Dec 2013) when the price action confirmed a bullish “Pennant” formation. Since then, the share price had risen to a high of RM1.22, before settling at yesterday’s closing price of RM1.15 (+26%). While the share price had surpassed our initial technical target price of RM1.07, we note that the overall technical picture have yet to show any major signs of strain. The MACD remains in a healthy crossover with the signal line. At the same time, yesterday’s minor pullback was on low volume. These indicate to us that any weakness in the share price will be very temporary, and to take profit now would be premature. As such, we suggest that traders adjust their target level to RM1.26 (from RM1.07). The former 85 sen stop-loss level should also be adjusted higher RM1.09 (which represents 4 bids below yesterday’s low.

 

Source: Kenanga