K1 rallied by 5.0 sen or 10.00% to settle above all its SMA levels. Buying interest looks promising from here as seen from the sudden surge in trading volume. The reversal play from its -1SD regression level is further backed by the strong rise of both Stochastic and RSI indicators. On the positive note, we recommend a ‘Trading Buy’ call on the stock with expectation that the share price would rally towards our mid-term TP of RM0.63 (R2).

Source: Kenanga Research - 12 May 2015