With positive news flows emanating from property developer
LBS, the share price advanced 3 sen to end at 92 sen on Thursday. LBS charted a
35% increase in its 1H12 revenue and is currently embarking on a 59-acre
project in Cameron Highlands according to wire news. Chart-wise, LBS made a
decisive break out of the crucial triangle resistance at 89 sen. With the
bullish move, the technical picture has significantly improved and we believe
that it is a precursor to further gains. The MACD Histogram is seen extending
northwards, which indicates that the bullish momentum remains intact and
investors should look to buy on weakness.
On the weekly chart, LBS's share price has formed an upward
sloping trend channel which extended all the way back to the 2008 crisis.
Earlier in September, LBS was not spared by the selldown in the broad market and
the share price retreated to the trend line at 80 sen where it found some
support. The share price subsequently formed a “Hammer” reversal candlestick
and rebounded beyond the 20-week SMA. We believe that with the rising MACD and
RSI, LBS’s upward momentum is likely to continue and the penetration of the 89
sen level on Thursday is impetus for likely further gains towards the upper
channel resistance at RM1.00.
Source: Kenanga
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