• Technical BUY on breakout with +13.8% potential return
• Last price: RM3.26
• Target price: RM3.64, RM3.79
• Support: RM3.10
• Stop-loss: RM3.09

BUY on breakout with a target price of RM3.79 and stop-loss at RM309. Based on the daily chart, KPG has formed a series of higher highs and higher lows that indicates the uptrend pattern. This is supported by an uptick in RSI and bullish crossover in DMI. Currently, MACD is on the verge of making a golden cross to the positive signal. We peg our targets at RM3.64 and RM3.79 once it manages to penetrate above the breakout level of RM3.33.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 31 May 2017