KFIMA’s share price has been rallying over the past two days, after its listed subsidiary FIMACOR (60%-owned) reported an impressive jump in 3Q14 earnings (+69% YoY) last Friday. With KFIMA set to release its own 3Q14/ 9M14 results tomorrow (26th Feb), speculation is rife that the upcoming earnings would produce commendable results  which could prompt further interest in the stock. The share price ended at RM2.13 yesterday (+4 sen) and from a technical perspective, KFIMA has broken out of a 18-month “Symmetrical Triangle” pattern to herald a resumption of its prior uptrend. The key indicators are also signalling a pick-up in buying momentum. Based on the chart pattern, we expect KFIMA to gradually make its way towards its August 2012 high of RM2.31. Should this level be taken out as well, KFIMA would then have a relatively clear path towards the measurement objective of RM2.65 next. Traders looking to buy into the stock should aim to take profit 3 bids below this level at RM2.62, while also employing a strict stop-loss level at RM1.89.

Source: Kenanga