GADANG was in the limelight following the confirmation of the RAPID project by the government. Yesterday, GADANG rose 11 sen (+8.4%) to settle at RM1.41 with high trading volume. Technically speaking, GADANG has been trading on an uptrend over the past one year. Following the strong showing yesterday, we believe that GADANG could rally to fill up the “Rounding Bottom” gap at RM1.48 fairly soon. Positive readings from all the key indicators (MACD, RSI and Stochastic) are supportive of our bullish view. However, light resistance is likely to be felt at RM1.48-level to neutralise the overbought situation. Therefore, we suggest traders look out for a resistance breakout or look to buy on price correction in order to target for a long-term upside of RM2.40.

 

Source: Kenanga