Thursday, July 4, 2013

Kreuz – Bullish Breakout flag formation

On 28 Mar, I have written on Kreuz when it was trading at $0.485 (See http://www.sharesinv.com/articles/2013/04/02/kreuz-holdings-good-results-strong-chart-low-valuations/). It has since appreciated 63% to a high of $0.790 on 21 May before retracing to the current level of $0.690.

With reference to Chart 1 below (dated 3 Jul 13), Kreuz seems to have completed a bullish flag formation on 3 Jul after it broke the resistance of 0.685 with volume expansion. Total volume transacted on 3 Jul was 4.35m shares which is more than the average 30D volume of 3.5m shares. This is also the highest volume reached since 12 Jun.

Chart 1: Kreuz breaks out of flag formation.


Source: CIMB itrade complimentary chart (3 Jul 13)

Near term target is around $0.725 / $0.755 – 0.760 / $0.800. Eventual measured target price is around $0.950. The bullish technical setup will be invalidated if it closes below the upper channel resistance on a sustained basis for more than three days.

On the fundamental aspect, consensus analyst target price is $0.830. (See Figure 1 below)


Figure 1: Analysts’ target price


Source: Bloomberg 4 Jul 13

P.S: This is an abridged version which I had sent to my clients on last Tues, 2 Jul where Kreuz was trading at 0.665-0.690. 

Readers who are interested to know more about Kreuz can email me at crclk@yahoo.com.sg for the latest analyst reports.


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