A rebound in CPO prices over the past few months has boosted TAANN’s share price to recover from its RM3.34 low a year earlier to yesterday’s closing price of RM4.45. The shift in sentiment towards the stock (from bearish to bullish) is apparent, with the formation of a bullish “Rounding Bottom”. While both the Stochastic and RSI indicators have entered into overbought region, we believe that the overall technical picture remains bullish. Hence, we suggest that traders look to buy near the RM4.23 support level should an overbought pullback present an opportunity. Once in, the overhead resistance levels to look out for are RM4.50 (R1), RM4.79 (R2), and RM5.12 (R3). 

 

Source: Kenanga