Yesterday, COASTAL’s share price increased 6.0 sen or 1.99% to close at RM3.08, settling above all its key SMAs. The stock has been consolidating since February to form a “Pennant” chart pattern. The technical scene is improving as all the indicators are heading up, suggesting that buying interest has been accumulating. We are issuing a “Trading Buy” on the stock with anticipation that follow-through buying interest will prompt the share price to surge on high trading volume to break out from its “Pennant” chart pattern. Our target price of RM3.44 is based on the “Pennant” chart measurement objective, while our stop-loss is placed at RM2.90 (S1).

Source: Kenanga Research - 7 May 2015