Earlier in February, SLP retested the 50 sen key resistance level after reporting FY13 earnings that rose 19% YoY. However, it wasn’t until yesterday that SLP finally broke above this psychological level in a decisive manner to finish higher by 2.5 sen at 52 sen. With the MACD, Stochastic and RSI indicators all in bullish mode, we reckon that SLP is poised for further gains ahead. Traders should consider entering between 50 sen-52 sen, with upside targets of 54.5 sen (R1), 60 sen (R2) and 66 sen (R3). At the same time, a stop-loss should also be placed just below the 50 sen (S1) resistance at 48.5 sen.

 

Source: Kenanga