Yesterday, TOPGLOV gapped up 14.0 sen or 2.57% to close at RM5.59, after trading in a range bound band of between RM5.40 and RM5.59 for the past two months. A “bullish Marubozu” was formed signaling that the buying momentum is picking up. The technical indicators are also fairly positive as both RSI and Stochastic indicators are heading up with a positive crossover. Hence, should the buying interest continues to accumulate, we anticipate the share price to break out from its immediate resistance of RM5.61 and rally at a similar quantum of its previous hike. Hence, we are calling a “Trading Buy” with a target price of RM6.05.

Source: Kenanga Research - 22 May 2015