On the technical front, COCOLND gapped up by 10.0 sen or 6.0% to settle above its 50-day SMA level with a bullish ‘Marubozu’ candlestick. The gap up in share price confirms its bullish outlook after its breakout from a multi-month downtrend resistance level at RM1.50. Indicator-wise, the MACD further deviates away from its zero line, undergoing a bullish divergence. Uptick in both Stochastic and RSI indicators further reinforced the bullish trend ahead. However, we view that there could be a slight consolidation in the near term to neutralize both indicators’ nearterm overbought situation. With follow-through buying interest on the stock, we view that the share price could rally once more after the consolidation to its next resistance level of RM1.88 (R1) and possible RM1.97 (R2) next.

Source: Kenanga