VITROX recently announced an impressive set of 1Q14 results, where the Group reported a net profit of RM3.9m (+870.5% YoY). Yesteday, VITROX surged 12 sen (+6.45%) to settle at RM1.98 with high trading volume. From a technical perspective, the MACD indicator is on a positive uptrend, suggesting that the near-term trend is still bullish. RSI indicator is also hooking upwards, suggesting that buying momentum is still pilling up. Despite the overbought situation shown by the Stochastic indicator, we believe that the strong 1Q14 results should attract investors interest to the stock. Thus, we are placing a ‘Trading Buy’ call on this stock, expecting follow-through buying interest to rally the share towards our ‘Rounding Bottom’ measurement objective of RM2.44. Stop-loss could be placed at RM1.79, 3 bids below the resistance-turned-support level.

 

Source: Kenanga