Lafarge Malayan Cement broke out of its resistance level RM 4.74 near the end of May 09 and the stock has been gaining ground since then to reach a high of RM 6.50.
As the leader of the Malaysian cement industry and a major player in the Asian export market, this stock should benefit from the stimulus plan that are being implemented by Asian countries.
The ADX is above 30 with +DI above the –DI, indicating a strong trend that is developing.
MACD is also bullish at the moment with the indicator above its signal line.
Analysts are expecting a pullback in the stock market after a spectacular run from March lows. This stock should be a good candidate to buy on pullback. Look to enter near the RM 4.74 level, which is the previous resistance level.