BJFOOD’s share price gapped up by 11 sen or 3.46% to break out from its trend channel resistance to settle at RM3.29 with a Marubozu candlestick. There is also a ‘Golden Cross’ done by the 20-day SMA over the 50-day SMA trend line, with the 100-day SMA also undergoing a steep uptrend. Key indicators are also on the bullish bias, as the MACD, Stochastic and RSI are all on a uptrend. Despite the overbought situation shown on the Stochastic and RSI, we remain comfortable as we view that it is a norm for this stock. Should there be follow-through buying interest on this stock, we view the share price could rally further towards RM3.37 (R1) next.

 

 

Source: Kenanga