Yesterday, FABER’s share price surged 5 sen to settle at RM2.80. Despite lacking high trading volume, we reckon that FABER’s technical picture looks interesting at this juncture, as its share prices have been stuck in an upward sloping trend channel between RM2.35-RM3.05 over the past four months. We believe that now is a good opportunity to buy into the stock as it is trading near the channel support level. In fact, yesterday’s strong move has resulted in a decisive break out of the 20-day SMA resistance level, offering a near-term bullish technical outlook. Indicator-wise, the MACD has also crossed above the zero-line, and this signals that buying momentum is strengthening. We suspect that follow-through buying interests are likely to surge today, and we look forward to a retest of the RM3.10 channel resistance level. 

 

Source: Kenanga