UZMA’s share price reacted positively to its latest contract win, surging 13 sen or 7.5% to RM1.86 yesterday on heavy volumes. Technically, the share price has broken out from the “Pennant“ chart pattern to stay above its 20-day MA trend line while approaching the 50-day MA trend line, suggesting bullish uptrend movement. MACD indicator is also lending a hand with a bullish divergence, while the strong buying momentum is showcased by both Stochastics and RSI indicators with the former catapulting into overbought region. We suggest investors to take this as a buying opportunity to ride on the bullish momentum. We expect the share price to rally towards our target price of RM2.29. (which is 3 bids below our ‘Flagpole’ measurement objective of RM2.32).

 

 

Source: Kenanga