KRETAM’s share price had been range bound for more than 2 months following an initial surge in October when the company announced a 5-for-1 share split (ex-date 6th Jan 2014). Last Tuesday, the share price finally broke out of its RM3.40-RM3.53 congestion zone to mark a continuation of its prior uptrend. For the day, KRETAM was up by 21 sen at RM3.71 on high volume. With the bullish single-day move, the lagging indicators have all hooked upwards into positive territory. We believe that this is a prelude to further gains ahead, and expect KRETAM to gradually make its way towards RM3.92 (R1) and RM4.16 (R2) next. In the meantime, downside should be quite limited, and we expect RM3.53 (S1) to provide adequate support against any unforeseen selling.

 

Source: Kenanga