• Target Price RM1.45, RM1.50
• Last closing price RM1.35
• Potential return 11.1%
• Support RM1.27
• Stop Loss RM1.26

Gap-up. Three-A Resources (3A) shares slipped to a low of RM1.26 from a high of RM1.46 on heavy selling pressure recently. Nevertheless, the stock opened with a gap-up yesterday indicating new interest in the stock and suggesting an upward continuation. We believe the selling pressure is overdone with new buying interest in the stock for the past three days. Positive buying momentum was signified by bullish RSI indicator. Should RM1.40 resistance level be broken, it may continue to lift price higher to the next resistance level of RM1.45, followed by RM1.50.

However, failure to hold at support level of RM1.27 may indicate weakness in the share price and hence, a cut-loss signal.

Source: PublicInvest Research - 7 Sep 2016