BRAHIMS surged 11.0 sen (11.6%) yesterday after the Group reported that they are on the lookout to acquire a local F&B company to reduce its dependency on the catering business. A bullish trend reversal signal is confirmed by yesterday’s strong trading, after the share price wallowed through the red since early March. In tandem with the all-time high trading volume, the Stochastic indicator has emerged strongly from its oversold region to further confirm the reversal play. Besides, RSI indicator is also trending upwards from its oversold level implying strong buying momentum. All in, we are recommending a Trading Buy call on this stock with expectation that the share price could rally on follow-through buying interest towards RM1.20 (which is also its +1 SD regression level). Meanwhile, we place our stop-loss at RM0.87.
Source: Kenanga
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