KPS up by 13 sen (+8.0%) to settle at RM1.75 yesterday, supported by an increase in daily trading volume. Chart-wise, KPS was trading at the range of RM1.40-RM1.90 for the past 8 months and a white candlestick has broken out from the resistance level of RM1.73, suggesting that bulls dominated the bears in the days trading. MACD is positively diverging from the Signal line, while RSI and stochastic still continue to trending upwards. As we view that the share price is on its third wave trend cycle, we reckon that KPS could possibly retest its previous high of RM1.90 (R1) soon; while we advocate investors to look for a breakout from the previous high which could trigger another round of rally.

 

 

Source: Kenanga