Leading turnkey contractor - MELATI reported a whopping 61% YoY jump in earnings during its 2Q14 result announcement on 29th-April. This has convinced investors on the potential and prospects of the stock which prompted the share price to rise 19 sen (+19.8%) to RM1.15 on Wednesday. From a technical perspective, MELATI has confirmed a “Bullish Pennant” chart pattern, hinting that the share is ready for a major upside movement. High trading volume coupled with the MACD-Signal line positive cross-over are suggesting that the stock is firmly biased to the upside. We suspect that buying interest would persist and extending gains over the next few days. Traders who look to buy into the stock could target to take profit at RM1.50, while placing a stop-loss at RM0.97.

 

Source: Kenanga