BORNOIL had broken out from its multi-month resistance level post its consolidation phase after retesting the strong resistance level three times. Long-term uptrend looks intact, as it trades above all its SMAs. Despite the bullish breakout, we reckon that the share price could undergo a slight consolidation, underpinned by the overbought situation on the Stochastic and RSI indicator. Thus, we advocate investors to re-look into the stock at RM0.96 as it retest the sustainability of its resistance-turned-support level. We deemed this as a good entry point as depicted by the historical trend where the share price would stage a rebound whenever the share price consolidate towards its multi-month support level. Immediate resistance is capped at RM1.05.

Source: Kenanga