ZECON gained 3.5 sen (+3.68%) closing at RM0.99 yesterday with increasing trading volume. It has broken out from its Fibonacci resistance at RM0.96 with MACD diverging further from the Signal line positively, indicating bullish sentiment. Stochastic and RSI indicators have also hooked up displaying robust buying momentum. Although Stochastic indicator is in slight overbought territory, we believe that the uptrend in the indicator could be sustained for a while longer looking at historical trend. Further buying pressure could rally its share price to retest the RM1.03 level (R1). Nevertheless, in the long run, the share price could possibly enter into a consolidation phase.

 

 

Source: Kenanga