KOSSAN’s share price rallied to RM3.61 after it released a sterling set of 9M13 results and on analyst’s upgrades. The share price has now broken above its previous high of RM3.60, and this marks a resumption of an uptrend (Note that KOSSAN had previously been range-bound over the past 3 months). With the breakout, the former RM3.50-RM3.60 resistance levels have now turned support, so near term downside should be quite limited. Next up, we anticipate a “Golden Crossover” between the 20-day SMA and the 50-day SMA in the coming days, which should offer additional impetus to buy into the stock. For now, our immediate upside target is RM4.00, and traders should look to take profit 3 bids below this level.

 

Source: Kenanga