Brahim: Next upleg beckons?

Not long ago, Brahim was a hot stock. It has a fast-growing food business - supplying meals to airlines - and another sure winner waiting for take-off - the sugar refinery in Sarawak. After its biggest airline customer, MAS suffered the unprecedented loss of 2 planes in less than a year and has to undergo adrastic restructuring, Brahim's future looks rather bleak. It may have to lose the profitable airline meal supply business when the existing contract with MAS is renegotiated.

From the charts below, we can see that Brahim has dropped from its  recent high of RM2.70 recorded in March 2014 to a recent low of just below RM1.20. It tested its long-term uptrend line and rebounded.


Chart 1: Brahim's weekly chart as at Nov 24, 2014 (Source: Tradesignum)

From the daily chart, we can see that Brahim has broken above the downtrend. In addition, a short-term uptrend line has formed. If the stock on weakness does not break below the RM1.40, the recovery for Brahim could be starting.


Chart 1: Brahim's daily chart as at Nov 24, 2014 (Source: Tradesignum)

Based on technical breakout, Brahim could be a good stock for medium-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Brahim.