KOBAY’s share price moved up 11 sen (9.9%) to settle at RM1.22 yesterday, post its positive quarterly results announced on the 25th Aug-14. Chart-wise, share price has broken out of the “Pennant” formation with a spike in trading volume. Key indicators are bullish as the MACD has staged a crossover of its Signal line. Meanwhile, RSI and Stochastics are hooking upwards suggesting buying momentum is building up. Overall, the technical picture looks promising and we expect share price to rally towards our ‘Flagpole’ measurement objective of RM1.57.

 

 

Source: Kenanga