Yesterday, CHUAN was up by 7 sen (+14.0%) to end at 57 sen on high trading volume. We believe that the stock is starting to garner investors’ attention after finally breaking out of the upper Bollinger Band following a period of price consolidation. Short-term technical outlook is bullish as suggested by the Bullish “Marubozu” candlestick coupled with the positive readings from the MACD indicator. With the trend probability favouring a move higher, we expect buying interest to rally the share price towards 63.5 sen (R1) and probably 70.0 sen (R2) next. Meanwhile, traders are advised to place a strict stop-loss at 48 sen.

 

Source: Kenanga