Yesterday, CRESCENDO rose 17 sen to settle at RM2.73. Notably, the share price has broken out of its RM2.25-RM2.63 low-volume consolidation zone to confirm a “Bullish Flag” formation. In fact, the share price has also surpassed the previous RM2.63 high (early-April) to enter into the uncharted territory. Indicator-wise, the MACD-Signal line has converged, and this gives us a sense that the bullish momentum is strengthening. Similarly, the 14-day Stochastic and RSI indicators have hooked up, and is now well above the neutral zero-line. All factors are pointing towards a continued advance higher and we believe that over time, the share price could extend its rally towards the “Bullish Flag” TP of RM3.16 (target RM3.13). Correspondingly, support should be present

at RM2.50, and a stop-loss should be placed at RM2.47.

 

Source: Kenanga