Yesterday, GAB’s share price rose 20 sen or 1.5% to finish at RM13.34, breaking out from the ‘flag’ chart resistance as well as its 20-day MA trend line to suggest an uptrend movement. Stochastic indicator has also reversed strongly from oversold region to close in on the overbought region, while the positive buying momentum was also represented by the upwards bound RSI. However, MACD was less indicative with its sideways movement. Should buying interest picks up, we expect the share price to challenge the next immediate resistance level of RM12.46 (R1) before testing RM14.15, which is at 3-tick below our flag pole measurement objective.

 

 

Source: Kenanga