SALCON is back on traders’ radar following a research house recommendation which suggests that the stock is deeply undervalued. Yesterday, SALCON rose 4 sen (+4.8%) to settle at RM0.87 supported by strong trading volume. Technical outlook is bullish, following a decisive breakout from the strong trend line resistance level of RM0.84. RSI (14) indicator hooked upwards to show that the stock’s relative strength is developing. From here, we expect SALCON to retest the next resistance level at RM1.00. Traders are advised to take profit 3 bids below this level at RM0.97, while employing a strict stop-loss at RM0.81.

 

Source: Kenanga