Penang-based electronic firm VITROX is projecting a strong year in view of the strengthening of the US Dollar which would boost its earnings, as it exports c.85% of its products. Chart-wise, VITROX share price has broken above its 3-month resistance level of RM2.28, post a ‘Spinning-top’ candlestick confirming an uptrend direction moving forward. In tandem with the increasing trading volume, key indicators are also on a bullish biased. As such, we placing a TRADING BUY call on this stock to ride on the bullish outlook for near-term play, with a target price objective placed at RM2.60 (R2) (which is the +2SD regression line). Meanwhile, a strict stop-loss is capped 3 bids below the immediate support level of RM2.26 (S1) at RM2.23.

 

 

Source: Kenanga