SALCON surged 3.5 sen or 4.09% to close at RM0.89 yesterday, settling above its psychological support level of RM0.87 (S1). Buying interest is seen to be picking up as seen from the incremental trading volume, after the share price has consolidated over the past week. In tandem with that, momentum are also hooking upwards to confirm the reversal play post the consolidation period. With that, we recommend a ‘Trading Buy’ on the stock with an expectation of a sustainable follow-through buying interest, hence share price would rally towards our long-term TP of RM1.01 (which is the stock’s all-time high level).

Source: Kenanga Research - 8 May 2015