PHARMA has attracted our interest due to its high trading volume, which led the share price to rebound from its support trend line. Key indicators are also supportive of the bullish maneuver, depicted by the emergence of Stochastic from its oversold region to confirm the bullish play while RSI is also showing strong buying momentum. With the bullish underlying outlook, we are placing a ‘Trading Buy’ call on the stock with anticipation that the share price will rebound towards its +2SD regression level of RM7.89 (R3) in the mid-term.

Source: Kenanga Research - 20 May 2015