Post rights issue announcement on 12 Jun 2014, AFFIN’s share price tanked towards a low of RM3.23. However, we note that bargain hunting activities were active over the last few days, signaling that the stock could offer a possible rebound play. Technically, “Three White Soldiers” candlesticks formation has taken shape on the daily chart, implying that the underlying buying pressure is strong. RSI (14) indicator is also hooking upwards, suggesting that the bias is to the upside. Hence, we believe that bargain hunting activities could remain active over the next few days. Immediate resistance is capped at RM3.50. Should this resistance level be taken out, we believe that AFFIN could possibly extend its rally towards RM3.64 next.

 

Source: Kenanga