• Since we placed a technical buy rating on Lion Corporation on 22nd September 2010, prices have broken out of its falling wedge resistance to current levels. The rebound was so strong that it even took out its long term 200-day SMA along the way.
• The improving technical landscape supports our bullish view on the stock.
MACD histogram bars are hovering in the positive territory while its RSI is also rising. However, expect some consolidation after recent spike up.
• Looking at the chart, we think the bulls still have legs. As long as prices stay above the 200-day SMA (now at RM0.31), the resistance at RM0.355 is within reach. If this level is taken out, next upside target is RM0.38.
Lion Corporation Berhad is an investment holding company. The company, through its subsidiaries, manufactures and distributes steel products and office equipment, provides construction and civil engineering services, and operates as a general merchant. Lion Corporation also assembles commercial vehicles and provides share registration.