Yesterday, HUPSENG surged 22 sen (closing: RM7.21) to stage a 3-month resistance breakout on the daily chart. Sentiment towards HUPSENG had been upbeat after they announced a 1-for-5 share split and a bonus issue of 200.0m new shares yesterday. Technical-wise, the stock gapped up and formed a bullish “Marubozu”-like candlestick suggesting that buying interest was firm. Coupled with the bullish readings from key momentum indicators, we expect follow-through buying to carry the share price to retest its next resistance level of RM7.63 (R1) fairly soon. Beyond this level, the next major resistance is located further up at RM7.93 (R2) and RM8.17 (R3). We suggest traders who buy into the share to take profit at RM7.75, while placing a stop-loss at RM6.87. 

 

Source: Kenanga