Technical speaking, CIHLDG has formed a bullish “Flag” pattern post the breakout through the resistance-turned-support level of RM2.20. However, the breakout is not convincing as due to the thin daily trading volume as well as the forming of a “Shooting Star” candlestick. Additionally, both Stochastics and RSI are trending close to the overbought territory, suggesting that a short-term healthy consolidation is imminent. As such, we advocate traders to look out for a surge in trading volume (to confirm its bullish uptrend) before entering the stock which could rally the share price towards our measurement objective of RM2.77. Meanwhile, immediate support level can be found at RM2.13 (S1).
Source: Kenanga Research - 7 May 2015
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