Stock Name: KINSTEL
Company Name: KINSTEEL BHD
Research House: CIMB

KUALA LUMPUR: CIMB Retail Research said Kinsteel had a good run over the past few weeks and the upward trend also pushed prices above the downtrend channel.

'We see this as a precursor of more upside ahead. If our count is correction, the stock will most probably swing past its 200-day SMA at 93.5 sen before inching towards RM1.01 next,' it said in a technical report issued on Tuesday, Aug 3.

CIMB Research said indicators also show signs of improvement. MACD has finally turned positive while its RSI is rising towards the upper band of the neutral zone.

'Our positive stance on the stock is further reinforced by the fact that its 30-day SMA has cut above the longer term 50-day SMA. Unless the candles breach its uptrend support line, at RM0.845-RM0.835, we think the odds still favour the bulls,' it said.