K1’s technical picture has turned bullish after its share price jumped 3 sen to close at RM0.345 on high trading volume. The bullish move has caused a breakout from a “Bullish Flag” chart pattern, hinting that the share is poised to enter into another round of rally. Although the key momentum indicators have yet to issue any strong buying signals, bear in mind that the momentum indicators are lagging indicators. Should the upswing momentum continue from here, we believe that the share could retest its previous high at RM0.41, before an eventual move towards RM0.55 (the “Flagpole” measurement objective). Meanwhile, a protective stop-loss should be placed at RM0.285 (3 bids below the RM0.30 support level).

 

Source: Kenanga