Kian Joo broke above its downtrend line

One of the most promising performer for today (so far) is Kian Joo. The stock was up 10 sen to RM1.32 (at the close of the morning session) on volume of 13509 board lots. The share price has been inching up for the past 3 days on increasing volume. A quick check of the chart shows that Kian Joo has just broken above its medium-term downtrend line resistance at RM1.25 and the neckline of an inverted "head-and-shoulders" formation at the RM1.22 level.


Chart: Kianjoo's weekly chart as at Feb 20, 2009 [12.20 noon] (source: Quickcharts)

KIan Joo is expected to announce its results for 4Q2008 shortly. The market may be anticipating further increase in the net profit, which enjoyed a healthy jump in 3Q2008 due to "higher sale revenue in its can division & higher contribution from its Vietnamese operation" (go here).

Based on the technical breakout, Kian Joo could be a Trading Buy.