Benalec (RM1.34 - Accumulate): Time to reposition for a breakout above the downtrend line channel

·         Short term technical outlook is on the mend after holding well above the 50-d SMA (now at RM1.31), 50% FR (RM1.30) and lower Bollinger band (RM1.28) support levels, underpinned by improving technical readings of its slow stochastic and MACD while RSI is still consolidating.

·         We expect Benalec to retest the 200-d SMA at RM1.36 and upper Bollinger band near RM1.38 resistances soon. A breakout above RM1.38 will spur prices higher towards downtrend line channel near RM1.42 and RM1.47 (23.6%FR), followed by RM1.59 (77 Jul 11 pivot high). Immediate supports are RM1.28-1.31. Cut loss below RM1.26.