Yesterday, SALCON attracted strong interest as its share price gapped up 4.64% to close at RM0.79 after undergoing a 1-month consolidation. Its primary uptrend remained intact as it is trading above all its SMAs as well as along its uptrend channel. Indicator-wise, the bullish reversal was reaffirmed by the Stochastic indicator reversing strongly from its oversold region and RSI indicator heading up north. Looking at its historical trend pattern, we believe that the share price will rally and retest its trend channel resistance. Thus, we are issuing a “Trading buy” call on the stock with a target price of RM0.88 with a strict stop-loss at RM0.76.

Source: Kenanga