CYPARK is gaining some strong interest from retail investors after it won a deal worth RM17.8m to undertake construction works for a private school in Johor. At the meantime, analysts also reaffirmed their “outperform” call, citing that its strong cashflow and good prospects of the renewable energy business would support its earnings growth going forward. From the technical point of view, CYPARK is now tracking a long-term bullish reversal pattern. Short term resistance level at RM2.45 was taken out convincingly with its 17 sen gains yesterday (RM2.60 closing price). We believe the stock has now turned bullish after the strong showing on the volume indicator. Key indicators (MACD, RSI, Stochastic) are all positive and improving. Thus, we believe that CYPARK could possibly extend its rally towards RM2.84 (R1) and then RM3.30 (R3) to close the gap of ‘Saucer Bottom’ chart pattern in the short-term. Meanwhile, downside appears limited at RM2.45 (S2). 

 

Source: Kenanga