AmInvestment Bank Berhad (AmInvest) believes that buying interest in LGMS Berhad is back and has given the stock a target prices of RM1.20 and RM1.30.
In its Retail Research ‘Stocks on Radar’ note to investors today, AmInvest said that the stock pushed out from the 1-week bullish flag pattern with a long white candle yesterday.
“With the hammer pattern coming off the rising 20-day EMA on 2 Sep, the bullish momentum is likely picking up,” the report said.
“A bullish bias may emerge above the RM1.10 level, with a stop-loss set at RM0.995, below 2 Sep’s low.
“Towards the upside, the near-term resistance level is seen at RM1.20, followed by RM1.30. Entry : RM1.10–1.14 Target : RM1.20, RM1.30 Exit : RM0.995.”
This development follows on from RHB Retail Research believing that “LGMS is looking to climb higher after staging a bullish breakout” late last month.
In a trading stocks note on 26 August, the research house said that the stock managed to break past the RM1.11 immediate resistance level to close at a record high level.
“Amid bullish momentum, the stock should continue charting ‘higher high’ patterns, heading towards RM1.18, followed by RM1.25.
LGMS closed at RM1.17 today (7 Sept), up some 2.63% from yesterday’s close.
