Since our “technical buy” recommendation on the 3 Dec 2013, ASIAFLE has gained 25% from the initial price of RM4.43 to yesterday’s closing price of RM5.54. In fact, the strong performance has resulted in the share price surpassing our RM5.49 target level (note that we had previously increased our technical target price from RM5.07 in a subsequent report dated 22nd Jan 2014). While the technical picture has yet to show any signs of weakness, both the Stochastic and RSI indicators have entered into overbought regions and we believe that a healthy pullback may be due. As such, we are would prefer to take some chips off the table for now. In the event a pullback occurs, we may again revisit the stock with another technical buy call.

 

Source: Kenanga