Our new initiation, construction counter - HSL (refer to report dated 23-April 2014) has attracted investors’ interest due to its strong balance sheet and high ability to secure new contracts from the on-going SCORE development. Yesterday, HSL surged 9 sen to break out from its 1-year channel resistance level of RM1.85 to settle at RM1.91. In tandem with its high trading volume, the share price key indicators (Stochastic and RSI) also hooked upwards, suggesting that bullish momentum is strengthening. From here, we expect follow-through buying interest to lift the share price towards RM2.00 (R1) and possibly RM2.18 (R2) further. Meanwhile, we suggest traders to employ a strict stop loss 3 bids below the share’s new ‘resistance-turned-support’ level at RM1.82.

 

Source: Kenanga