KUALA LUMPUR (July 11): AllianceDBS Research said Gadang Holdings Bhd (Gadang) is in position to trade higher and that Gadang had on July 8 traded higher to RM2.19 before settling near the day ’s high at RM2.18 (up 9 sen or4.30%).

In its evening edition last Friday, the research house said a crossover of the RM2.20 hurdle would likely see Gadang trading upward with the next upside target pegged between RM2.31 and RM2.44.

It said risk taking traders could establish a buying position at RM2.15 on a small pullback.

“Once a buying position is established, a stop loss at RM2.12 level must be placed for risk capital protection, and this RM2.12 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 RM160 – RM290 potential profit, you may acquire 1,000 shares with a capital amount of RM2,150 assuming buying order is filled at RM2.15,” it said.