FARLIM has been on a consolidation mode around RM0.65-RM0.71 over the last one month. Yesterday, FARLIM gapped up from its previous close to settle at RM0.77 with strong trading volume. MACD indicator had also crossed its signal line, indicating a positive near-term outlook. Besides, key indicator like Stochastic and RSI are also positive, lending a case for positive bias. In tandem with this bullish bias, we believe that follow-through buying interest could rally the share price towards its channel resistance level of RM0.90 in the next few weeks. Meanwhile, traders are advised to employ a protective stop-loss at RM0.70, which coincides with the 20-day SMA support level.
Source: Kenanga