FABER has been trapped in an uptrend channel for the past 9 months. Yesterday, the share price surged 5 sen (+1.89%) to settle at RM2.70. Despite a lack of high trading volume, we believe that now is a good opportunity to buy into the stock as it is now trading near its channel support level. In fact, key momentum indicators are hooking upwards, suggesting buying momentum are picking up. Should buying interest continue to stay strong over the next few days, the share is likely to stage a rebound to retest its channel resistance level at RM3.15 (R3). Traders who look to buy into the share should target to take profit 3 bids below this level at RM3.12, while employing a strict stop-loss at RM2.63.

 

Source: Kenanga