Yesterday, GBGAQRS rose 8 sen to RM1.18 (+7.27%), bucking a downtrend since March-14. We believe the share price has found its bottom as the price rally comes on the back of a spike in trading volume after the positive 1Q14 results announced the previous day. The gap between 100-day SMA and 20-day SMA appears to be narrowing and pointing towards an uptrend while a “Hammer” candlestick has taken shape on the daily chart, serving as a strong bullish reversal pattern. MACD is also looking to cross over the signal line, which may further stimulate buying interest. From here, we expect GBGAQRS to rebound further towards the next resistance level at RM1.28 (R2) and possibly RM1.40 (R3).
Source: Kenanga