KOSSAN’s technical picture has turned bullish after the share price broke out above the overhead resistance level @RM6.21 to a fresh high @RM6.38 (+38 sen) yesterday. In fact, the share price has rebounded strongly from the psychological support (20-day SMA support) @RM6.00 with a bullish “Marubozu” candlestick and active trading volume, which indicate a resumption of the uptrend. Furthermore, as its key indicators are mainly biased to the upside, we believe the share price has further room to go. We are calling a BUY with a short-term technical target price @RM6.89 (3-bids below Fibonacci resistance). Meanwhile, our immediate stop-loss level is pegged at RM6.09 (3-bids below support).
Source: Kenanga