SMRT gained 6.5sen (9.15%) to close at RM0.775 yesterday with a spike in trading volume seen. From a technical perspective, a breakout from its “Ascending Triangle” chart pattern is seen at RM0.74 level. Moreover, MACD is also seen to be trending up looking poised for a positive crossover the Signal Line, signaling strong buying pressure in the stock. Momentum indicators (RSI and Stochastic) have also hooked upwards suggesting buying momentum is piling up. We are placing a “Trading Buy” call on this stock with a target of RM0.92 (3 bids below our measurement objective of RM0.94) while employing a strict stop-loss at RM0.73 (3 bids below the RM0.74 level).

 

Source: Kenanga