KOSSAN’s share price rose 20 sen or 4.4% to settle at RM4.70 yesterday, bucking the overall bearish trend. Technically, the share price staged a reversal since the start of the week after hitting RM4.30 (S2) as well as its 100-day SMA trend line last Friday with the latest price staying above all key moving averages. These developments suggest an uptrend movement. Bullish bias was further evidenced by the MACD indicator, which is heading north. Meanwhile, both Stochastics and RSI indicators are trending upwards to signal strong buying momentum, with the former surging beyond the overbought territory. We expect the share price to rally towards RM4.98 (R2) should persistent buying interest drives the share price to break out from the stubborn resistance level of RM4.72 (R1).

Source: Kenanga