SAB has attracted some buying interest from investors recently after it subscribed to 99% of the new share capital of Pembinaan Gejati Sdn Bhd as a directly owned subsidiary of SAB. Yesterday, SAB surged another 26 sen (+6.3%) to settle at RM4.16 with a long bullish white candlestick. The share price has broken out of its resistance of RM3.90 with strong volume, hence confirming a ‘Bullish Pennant’ which indicates a continuation of its prior uptrend. Key indicators like Stochastic and RSI are also hooking upwards, further supporting the bullish movement ahead. We expect follow through buying to rally the share price towards our ‘Flag Pole’ measurement objective of RM5.10. Traders who look to buy into the stock should target to take profit at RM5.07, while employing a stop-loss level at RM3.77.

 

Source: Kenanga