SUMATEC’s share price was up 3.5 sen (+12.7%) yesterday after it announced a 14.5% increase in oil reserves in Khazhakstan. Trading volume spiked up yesterday, and the share price has now broken above all the short, mid and long term moving averages level. Hence, we believe that SUMATEC is likely to extend its uptrend move over the next few days. Indicators-wise, the MACD has just crossed over the signal line to confirm a buy signal, while the RSI and Stochastic indicators are also hooking upwards. Should buying interest persists, we believe that the share price could extend its rally towards RM0.45 (R2).

 

Source: Kenanga