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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.
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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
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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.