SIGN’s share price rose 8 sen (5.63%) yesterday to RM1.50 with a spike in trading volume over the last 3 days following the company’s announcement of positive quarterly results. The share price had been in consolidation mode since October-13 but has had a strong breakout from a ‘descending triangle’ chart pattern which suggests that the share price would now be positively biased and would continue its uptrend. Chart-wise, SIGN has formed “Three White Soldiers” candlestick which signals a bullish reversal pattern. RSI and Stochastics also support the bullish uptrend, but both indicators are close to overbought territory. We expect share price to trend up further should buying momentum persist and push towards RM1.71.

 

Source: Kenanga