Test and burn-in systems provider, ELSOFT recently secured orders worth RM25.0m of LED test equipment, which is expected to contribute to the Group’s earnings of approximately 4.0 sen per share for FY14. Having attracted investors’ interest, ELSOFT rose 3.5 sen (+4.86%) to settle at RM0.75 with strong trading volume. From a technical perspective, ELSOFT had staged a multi-month resistance breakout recently. Key momentum indicators like MACD and RSI are also hooked upwards, suggesting that buying interest is gaining strength. With this bullish outlook, we believe follow-through buying momentum could rally the share price towards its next resistance level of RM0.80 (R1) next. Meanwhile, we suggest traders to place a strict stop-loss 3 bid below the share’s new ‘resistance-turned-support’ level of RM0.70 (S1) at RM0.67.

 

Source: Kenanga