OSK surged 10.6% or 22 sen yesterday to close at RM2.29 as the potential merger between CIMB, MBHB and RHBCAP (which OSK has a 9.9% stake in) gained traction. The share price broke out from the resistance level of RM2.16, to close above all its SMA while the 50-day SMA also staged a crossover against the 20-day SMA, reflecting the positive momentum. Meanwhile, the bullish outlook was further evidenced by the divergence of the MACD indicator. RSI and Stochastics indicators both hooked upward, signaling the strong buying momentum. Should the buying interests persist, we expect the share price to reach the RM2.33 (R1) level before retesting the next resistance of RM2.56 (R2).

 

 

Source: Kenanga