ASIAFLE rose 15 sen to RM4.43 after the company reported 2Q14 earnings that increased by 44% YoY. The market reacted positively to this news, which resulted in the share price gapping up on opening. Notably, ASIAFLE share price has broken out of a "Bullish Flag" pattern to signal a resumption of the prior uptrend. The MACD indicator is also showing a pick-up in buying momentum. As such, we expect follow-through buying to continue over the coming weeks, with a meaty upside target of RM5.10 (aim to take profit 3 bids below this level). Meanwhile, the downside is likely to be limited from here, and we expect the recent low of RM4.07 to offer strong support (place stop-loss 3 bids below this level).

 

Source: Kenanga