Post rights issue announcement, YINSON’s share price has been on a declining trend. However, we believe that the stock has finally found its bottom at the current price level. Yesterday, YINSON inched up 9 sen (+1.91%) to RM4.79 on the back of increased trading volume. At the same time, a “Hammer” candlestick has taken shape on the daily chart, serving as a strong bullish reversal pattern. Indicators such as RSI and Stochastic suggest that YINSON has been deeply oversold, and thus a rebound may be imminent in near-term. Should buying interest resurface, we expect the share price to retest the next resistance level at RM5.17 (R1) followed by RM5.46 (R2).

 

Source: Kenanga