Shares of corrugated box maker ORNA advanced 5 sen to RM1.23 yesterday, as market speculated that it might be an acquisition target for further consolidation in the paper packaging industry. Despite the lacking of trading volume at this juncture, ORNA had formed an interesting “Bullish Pennant” chart pattern, waiting for a technical breakout. We believe that the short-term trend of ORNA is bullish as the stock is now trading above all the short, mid and long term moving averages. Indicators also suggest that buying pressure is accumulating, and still below the overbought zone. Should buying interest emerge and there is a breakout from RM1.25-resistance level, ORNA is likely to go into another bull run, rising towards RM1.75 (the Bullish Pennant chart pattern measurement objective).

 

Source: Kenanga