Recall that on the 3rd of Dec 2013, we recommended a “technical buy” on ASIAFLE at RM4.43 when the share price confirmed a classic “Bullish Flag” pattern. Within a short time frame of just six weeks, the share price surpassed our target price of RM5.07 before ending yesterday off-session high at RM5.02. Even with the strong run-up, the technical picture has yet to show any signs of strain. This leads us to believe that it may be premature to take our bets off the table. As such, we would suggest that traders employ a “trailing stop-loss” strategy from here, which exposes traders to further upside potential, whilst minimising risk (given the tighter stop-loss level). As a formality, we are raising our technical target price to RM5.49 (4 bids below RM5.52 resistance) and stop-loss level to RM4.85 (3 bids below RM4.88 “Window Gap”).

 

Source: Kenanga