Yesterday, EVERGRN’s share price rose by 8.0 sen to close at its all-time high of RM1.32, backed by sharp spike in trading volume, indicating strong buying interest. Chart-wise, a rounding-bottom formation is formed with the share price breaking to above its 3-month high. Key indicators generally indicate the strength despite overbought condition. MACD shows that the stock is currently trading way above its positive signal line. Stochastic and RSI, on the other hand, show that the stock has entered into the overbought zone. Given that the share price has broken above its previous resistance level of RM1.28, we place a “Trading Buy” call and expect a rally towards our ‘rounding-bottom’ measurement objective target price of RM1.50 in the long term.
Source: Kenanga Research - 9 Jun 2015
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