Kianjoo- to play catch-up with Canone

Canone broke above its 'range' at RM2.40 in late June. It shot up today to a high of RM3.13. If we assumed a gain of 1-time the prior range of RM0.60, then the target for the present move could be about RM3.00. As such, Canone has overshot that target and this may imply that it is going for a possible move of 1.68-time its prior range (or a RM1.00 move) - with the next target being RM3.40.


Chart 1; Canone's daily chart as at July 3, 2012-4.00pm (Source: Quickcharts)

Canone is obviously attracting a lot of interest as it managed to buy over Kianjoo at a cheap price. Kianjoo has also broken above its horizontal line at RM2.30. If we also assume a gain of 1-time the prior 'range' of RM0.50, then the target for Kianjoo could be RM2.80 (or, RM3.15 if it can achieve a move of 1.68-time its prior range).


Chart 2; Kianjoo's weekly chart as at July 3, 2012-4.00pm (Source: Quickcharts)

Based on the above, I believe that Kianjoo is a trading BUY. It is a safer bet as compared to Canone which has risen quite substantially.