The developing play for Oil & Gas sector soon lifts up even a
stranded aircraft carrier, SAPNRG. This stock, which had a massive
rights issue of RM4 billion in December last year, which was
under-subscribed (here).
It has an outstanding shares issued of 15.979 billion units, and yet
today the sign is that the stock may join in the O&G rally.
SAPNRG just broke above its recent high of RM0.335. This will be its
immediate support while its immediate resistance will be RM0.40. For the
less technically inclined, you just need to know that the rights issue
was done at RM0.30 apiece. It is very likely that this rights issue
price will provide a very strong support, thus minimizing your downside.
Based on the upside breakout of the immediate resistance, SAPNRG is a trading BUY. Good luck!
Chart: SAPNRG's daily chart as at Mar 13, 2019 (Source: Malaysiastock.biz)