Highlights / Stock Picks of the Day - SYF Resources Berhad ("SYF") - BUY

In August-October, speculation was rife that SEGi group managing director Datuk Clement Hii was keen to gain control of SYF after wire news reported that he had been mopping up shares of SYF from the open
market. Since then, the initial euphoria on the stock has died down, and the share price entered a period of low volume consolidation. That is until yesterday, when the share price surged 5.5 sen to 76 sen. On the daily chart, SYF confirmed a bullish "Pennant" chart pattern. Trading volume was notably higher for the day and we believe that the strong move is a precursor to further upside ahead. As "Pennant" formations usually mark the halfway point of an upward move, the chart implies a potential 39 sen upside towards RM1.07. To that regard, we suggest traders to peg a target 2-bid below the measurement objective, hence RM1.05, and to place a stop-loss at 69 sen.

Source: Kenanga