Yesterday, K1 rose 8.5 sen (+25.0%) to close at RM0.42. The strong trading volume coupled with the confirmation of “Bullish Pennant” chart pattern has caught our immediate attention. Readings from the key momentum indicators are suggesting that buying momentum is building up. Besides, the MACD indicator has also started to move away from its Signal line, issuing a buy signal. Traders who look to buy into the stock should target to take profit at RM0.56 (3 bids below the Pennant measurement objective of RM0.59) while employing a stop-loss at RM0.31, which is 3 bids below the ‘resistance-turned-support’ level of RM0.34.

 

Source: Kenanga