Renewed buying interest emerged in Southern Steel, says AllianceDBS Research

Renewed buying interest emerged in Southern Steel, says AllianceDBS Research

Renewed buying interest emerged in Southern Steel, says AllianceDBS Research

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KUALA LUMPUR (Aug 10): AllianceDBS Research said Southern Steel Bhd (SSteel) had on Aug 9 crossed over the RM1.80 hurdle to settle at the highest high of RM1.84 since 19 Jul 2013 (up 13 sen or 7.60%).

In its evening edition yesterday, the research house said te crossover of the RM1.80 hurdle would likely see SSteel trading upward with the next upside target pegged between RM2.00 and RM2.10.

It said risk taking traders can establish a buying position at RM1.80 on a small pullback.

“Once a buying position is established, a stop loss at RM1.77 level must be placed for risk capital protection, and this RM1.77 is to be followed by a trailing stop loss strategy.

“If you are prepared to take a trading loss risk of RM30 (excluding brokerage) for RM200 – RM300 potential profit, you may acquire 1,000 shares with a capital amount of RM1,800 assuming buying order is filled at RM1.80,” it said.