KUALA LUMPUR (Jan 14): AllianceDBS Research said Kay Hong Bhd (Layhong) had on Jan 11 crossed over the 43 sen hurdle to a high of 46.5 sen before settling near the day’s high at 45 sen (up 3 sen or 7.14%).

In its evening edition last Friday, the research house said the crossover of the 43 sen hurdle would likely see Layhong trading upward with the next upside target pegged between 48 sen and 49 sen.

It said risk taking traders can establish a buying position at 43.5 sen on a small pullback.

“Once a buying position is established, a stop loss at 42.5 sen level must be placed for risk capital protection, and this 42.5 sen is to be followed by a trailing stop loss strategy.

“If you are prepared to take a trading loss risk of RM10 (excluding brokerage) for RM45 – RM55 potential profit, you may acquire 1,000 shares with a capital amount of RM435 assuming buying order is filled at 43.5 sen,” it said.