Following the acquistion of Australian-listed e-pay Asia Ltd (EPY), GHLSYS’ key management revealed that the company is exploring other M&A opportunities in Indonesia, Philippines and Thailand this year. Technically speaking, the stock has broken of a brief consolidation zone to confirm a “Triangle” formation. With rising trading volume and positive MACD indicator, we believe this signals a continuation of an uptrend towards the “Triangle” measurement objective at RM1.17. Traders looking to buy into the stock should target RM1.14 (3 bids below the RM1.17 TP), while employing a strict stop-loss at RM0.77 (representing 3 bids below the RM0.80 resistance-turned-support level).

 

Source: Kenanga