After a healthy pullback in January, IRIS’s share price roared back to life yesterday with a 5 sen surge (to close at 44.5 sen) on high volume. This could be due to speculation surrounding the Group’s recent acquisition of a controlling stake in a Solomon Island-based firm which would enable IRIS to expand its construction and property development business internationally. As a result of the sharp move yesterday, IRIS confirmed a “Bullish Flag” pattern which is indicative of a continuation of its prior uptrend. The key indicators are also supportive of an upcycle and from here, we expect IRIS to extend its gains over the next few weeks towards the 56.5 sen (R3) “Flagpole” measurement objective. Meanwhile, the nearterm downside should be quite limited, and we would expect strong support at the 39 sen (S1) support level.

 

Source: Kenanga