On the back of the reversal in crude oil prices, FGV surged 10 sen or +2.8% to gap up away from its multi-month downtrend resistance level of RM3.57 to settle at RM3.67. In tandem with the year's high trading volume, FGV is painting a bullish outlook with the MACD undergoing a bullish divergence. Despite both the Stochastic and RSI indicator hovering around the overbought region, they are still posting positive uptrend signal. We view that should buying interest continues to pile up on this stock, the share price could rally towards its next resistance level of RM3.80 (R1) and possibly RM3.98 (R2) next in the near term.

 

 

Source: Kenanga