Key West's share price continued to rally after breaking outfrom the RM0.16 level, with the stock still exhibiting strong upward momentumand signs of extending its steep uptrend line. It is expected to continueclimbing at the current rate until the steep uptrend line is violated. Hence,we advise  traders to accumulate KeyWest's shares now as the stock is likely to extend its uptrend. It had alreadyhit our previous price target of RM0.19 and we are now eyeing the RM0.29 andRM0.34 levels as  our new targets.  Trades should cut their  losses should the share price close below theRM0.21 level, the violation of which is expected to take out the steep uptrendline too. 

In late February, we advised traders to accumulate KeyWest's shares to bet on a breakout from the RM0.16 level or the Nov 2011 peak.A breakout did materialize and the subsequent momentum was very strong as itsshare price gained as much as 45% during the session, with our price target ofRM0.19 also achieved.

Meanwhile, Key West's upward momentum appears to be still robust. The stock continued to scale higher at above the steep uptrend line. We advise traders toaccumulate shares now and ride on the prevailing wave of optimism. Should the steepuptrend line continue to extend,  theshare price is expected to the test the RM0.29 level or even the RM0.34 level, bothof which represent major overhead resistances. The stock's daily RSI closed at69.6 pts yesterday which means that there is potential for the steep uptrend topower ahead. Its daily RSI reached the 80-pt level when the stock recorded an intradaygain of 45% mentioned earlier.

Nevertheless,  therecould be higher risks  involved forinitiating positions while  the  share price is appreciating quickly. Tradersshould consider cutting losses if the share price falls below the RM0.21 level,the violation of which is expected to simultaneously  take out the steep uptrend line. Goingforward,  expect the  previously strong  resistance area of  RM0.18-RM0.19, which was violated recently,to act as a very strong support level for the stock.