Sunway Berhad (5211)
A new entity created from the merger between Sunway Holdings Berhad and Sunway City Berhad.
As shown in chart above, this counter has been in a major base-building stage for many years and major reversal pattern was finally confirmed in March 2013 with a breakout above major resistance level of RM2.75 - RM2.80.
RSI reading shows that the stock is a long-term bullish counter with potential upside at RM5.20 in the long-term based on cup-and-handle pattern that is formed over a 13-year period.
Barring potential volatility arising from the upcoming General Election in Malaysia, Sunway promises longer term potential upside with high degree of certainty.
Another point worth noting is that the company's warrant: Sunway-WA (5211WA) is currently trading at an attractive premium of around 14% only. The warrant is a good proxy for a leveraged investment into the positive outlook of the mother share with an expiry in 2016.
An ideal approach to investing in such counter would be "buy at dips" and/or "buy more at further dips" so that one could ride on the long-term uptrend over the next few years.
The promising outlook is solely based on technical analysis.
