Following the published of article 'Can LSteel breakout from forming Cup and Handle Pattern' on 27-5-17. Finally, LSteel take 21 days to breakout from the handle pattern from RM0.53 to close at RM0.565.  LSteel retest  and hopping over the resistance level with increasing volume ie around 7 miilion share traded.  It is a very very bullish sign indeed and the UPTREND pattern shall be continue due to LSteel has also breakout for 52 weeks high.

For the next three year with imposed of the extension of safeguard duty, the uptrend of Steel comodity is intact and can grow further. The second half of 2017 will be generally a Election year. All projects will be kicked off in Second half to manufacture well the strong economies environement. This shall further stiffer the demend of steel locally. The price of LSteel will explode again when it start production of Rebar which are planning in the coming end of June 2017.The Chances of pay out Dividen is very high due to cash flow improve tremendously for fy 2017.

The price target given by ISaham will RM0.85 as follows:. 

Fundamental   Score: 3.3  

Technical   Score: 3.8     Strong Uptrend     52-Week High     Kumo Breakout  
Overall   Score: 7.1  
Code 9881
iSaham Fair Value 0.85

Part 1 (previous article)

Following release of 1st Quarter Results dated 31-3-17. The net profit surged to RM3 million, showing the best quarters over past few years, the cash flow has been improved to nearly RM6 million, Revenue also improve 11 million from last quarter, finance cost also reduce substantially. 

From the Chart View, LSteel is Forming A Cup and Handle pattern. A Cup and Handle pattern resemble it namesake, a cup with a handle. The cup is shaped as a “ U “ and the handle  has a slight downward drift. The right hand side and bottom of the pattern typically has low trading volume and may be as short as 7 weeks or as long as 65 weeks.

A Cup and Handle is considered a bullish continuation pattern and is used to identify buying opportunities. Refer to chart , the price retrace from a high of 0.54. to cup bottom low of 0.40 sen. A Breakout downward trend line  occur at 0.47 sen provide a start of  buy opportunities signal. if the Price hovering over 0.53 sen convincingly is a significant Breakout  with increasing of Volume.

The depth of Cup is around 0.14 sen (ie 0.54-0.40) signify the potential first target high .A Profit Target is determined by measuring the distance  between  Depth of the Cup (ie 0.14) from the   pattern breakout level ie 0.53). , hence the first price target high will be 0.67 sen (ie 0.14+0.53). The Price will push further high should the buying momentum continue.

Stop loss order may be placed below the handle breakout level ie below 0.46 sen.