HALEX’s “Bullish Flag” pattern was confirmed earlier on Tuesday. However, it wasn’t until yesterday that trading volume really surged. This offers a convincing signal that follow-through momentum is sustainable, which also paves the way for further gains ahead. From here, we would expect the 81 sen (R1) level to be retested fairly soon. Should this level be taken out as well, we would then set our sights on the 90 sen “Flagpole” measurement objective. Traders looking to buy into the stock should aim to take profit 3 bids below this targeted level at 88.5 sen, while employing a stop-loss at 70.5 sen (3 bids below the 72 sen recent low.

 

Source: Kenanga