Monday, April 11, 2011

KFC Daily Chart: Positive Breakout Amid Improving Technicals

KFC’s 396.5 million bonus and 31.7 million warrants (1 for 25 after share split and bonus) were listed in September 10, after completing the share split (1 into 2) and bonus issue (1 for 1).

The stock peaked at 52-wk high in November 10 amid speculation that US private equity fund was looking to buy out the company (denied by KFC). Since then, KFC corrected to as low as RM3.46 in February 11 before staging a positive breakout above the downtrend line to RM3.75 last Friday.

Accumulate as we expect more appreciation ahead, given that technical readings are on the mend. Immediate upside targets are RM3.92 (61.8% FR), RM4.05 (50% FR) and RM4.18 (38.2% FR). Major support levels are RM3.67 (mid Bollinger band) and RM3.60 (lower Bollinger band). Put a stop below RM3.60.

Alternatively, one may look at KFC-CA due to its high gearing and KFC-WB due to its long maturity date.

KFC Daily Chart: Poised To Retest RM4.00-RM4.20 Zones Amid Positive Breakout And Improving Technicals.
KFC 11-04-2011

Source: HLeBroking

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