ORNA surged 10.0 sen or 7.87% to break above its ‘Flag’ chart pattern, settling at RM1.37. In tandem with the stronger trading volume, both Stochastic and RSI indicators are trending upwards strongly suggesting buying momentum is still buidling up. With that, we view that the near-term outlook is promising despite the overbought Stochastic and RSI indicators. Therefore, we advocate traders who look to ride on the bullish momentum to set a target price of RM1.52 (based on Flagpole measurement objective). Meanwhile, conservative investors may want to wait for a possible consolidation towards its immediate support level of RM1.32 (S1) at the later stage to neutralize its overbought levels before entering the stock.

Source: Kenanga