BARAKAH has rebounded from its 3-month low to settle at RM0.875 yesterday. The 50-day SMA has performed a “Golden Crossover” the 100-day SMA, suggesting potential bullish move ahead. Indicator-wise, the MACD has completed a Signal line crossover as a result of the bullish move, and this indicates that buying momentum is picking up. Similarly, Stochastic and RSI indicators have also rebounded from oversold territory to reflect the start of an up-cycle. Should the buying interests sustain, we reckon that the share price could potentially make its way to retests the strong resistance of RM0.94. Thus, we are issuing a “Trading Buy” call on BARAKAH with TP of RM0.94. Meanwhile, stopped-loss level should be present at RM0.835 where the recent low is located.

Source: Kenanga Research - 14 Apr 2015