Chart-wise, ALAM is seen to trend almost in tandem with crude oil prices. In tandem with the strengthening of crude oil prices recently, ALAM has recently reversed from its multimonth downward spiral to gain 26.2% YTD. As seen on the high trading volume recently, strong buying support has emerged at the RM0.52. Uptrend looks very promising from here as the share price recently surged to break above its downtrend regression channel. Key indicators are also bullish-biased as depicted by the bullish divergence shown in the MACD, while both Stochastic and RSI indicator are suggesting bullish buying momentum despite their near overbought situation. With the bullish outlook ahead, we are placing a ‘Trading Buy’ call on this counter with an anticipation that the share price would rally, riding on the strengthening crude price towards our target price objective of RM0.95 (multi-month resistance level) in the near-term. Meanwhile, a strict stop-loss is placed at RM0.73 (in line with the mean-regression line).

Source: Kenanga