LPI was given an “OUTPERFORM” rating after they delivered firmer results for 1Q14. Yesterday, LPI rose 36 sen, or 2.17%, to close at RM16.96. From a technical perspective, the stock is currently trading near its trend-line support level, therefore offering an attractive entry price for investors. Stochastic indicator rebounded from the oversold level, suggesting that the sentiment of the stock has now turned from bearish to bullish. Hence, we believe that the stock is likely to extend its gains to RM17.96 next. Traders looking to buy into the stock should aim to take profit 3 bids below this level (at RM17.93), whilst placing a stop-loss at RM16.50.

 

Source: Kenanga