Late last month (28 March), KIMLUN announced a conditional Lease Purchase Agreement to acquire two parcels of freehold land totalling RM31.1m within the Nusajaya flagship zone in Johor. The plans to develop the land were well received by the market. As a result, KIMLUN’s share price had since rallied almost 10% to yesterday’s closing price of RM1.58. Technically speaking, KIMLUN’s share price has broken out of a bullish “Rising Wedge” pattern. With the RM1.55 resistance taken out on high volume yesterday, we reckon that the bullish momentum could sustain a further move toward the RM1.78 measurement objective next (target 3 bids below this level). Downside risk also appears limited at these levels, and we suggest that traders who are looking to buy into the

stock employ a “safety stop” just below the RM1.55 support level.

 

Source: Kenanga