After breaking out of the 6 months ‘rectangle’ pattern earlier this month, KINSTEL had been well supported on the resistance-turn-support level @ RM0.310.  In fact, KINSTEL managed a strong rally after briefly revisiting this RM0.31 level, and extended its gains to in the subsequent days (KINSTEL ended at RM0.425 yesterday). More importantly, we believe that the price action has confirmed a bullish “Flag” formation on the daily chart, and this marks a continuation of the uptrend towards RM0.49. Traders looking to buy into the stock should target RM0.475 (3 bids below technical target), while a stop-loss should be placed at RM0.38. This implies a potential gain of 11.8% and a downside risk of 10.6%.

 

Source: Kenanga