GTRONIC has been consolidating for the past three months to form an ‘Ascending Triangle’ chart pattern. Yesterday, the share price broke out from its strong resistance level of RM5.04 with high trading volume that imply a resumption of its previous uptrend. Key indicators are also lending a hand to the bullishness, with both Stochastic and RSI indicators trending up strongly while MACD indicator also staged a bullish crossover. With follow-through buying interest, we reckon that the share price could rally towards our measurement objective of RM5.51 in the midterm. However, we notice that the Stochastic indicator had entered into overbought region. Therefore, we advocate investors to wait for a technical pullback towards RM5.04 for a better entry level.

Source: Kenanga