Yesterday, YEELEE rose 11 sen to close at RM1.57 on strong trading volume. Our consumer analyst believed that the market has deeply undervalued YEELEE, as the company has been trading at a surprisingly low historical PE of 7.8x. (Refer to On Our Radar report on 18/3/2014). From the technical point of view, the shortterm trend of YEELEE looks bullish, following a decisive breakout from its all-time high resistance level of RM1.46 yesterday. As suggested by the readings from daily MACD and RSI indicators, buying momentum of the stock is also gradually switching from neutral to bullish. All these signals have led us to believe that YEELEE could potentially extend its rally towards RM1.68 (R1) and RM1.80 (R2) fairly soon. On the flipside, a fall towards to previous resistance-turned-support level of RM1.46 should see some renewed buying interest to emerge.

 

Source: Kenanga