Kianjoo & Canone- closure at last?

On July 19, I posted on Kianjoo testing its horizontal resistance at RM1.32-33, after an upside breakout of its triangle formation (go here). Since then, Kianjoo has broken above the RM1.32-33 resistance and it may challenge higher resistance level at RM1.50 & RM1.60. See Chart 1 below.


Chart 1: Kianjoo's weekly chart as at August 12, 2010_10.20am (Source: Quickcharts)

Interestingly, Canone has also broken above its strong horizontal resistance at RM1.12 yesterday. Canone could potentially revisit its April 2006 high of RM1.60-62. Is there a connection between these 2 stocks? You may recall that Can-One, through its wholly-owned subsidiary Can-One International Sdn Bhd, entered into a share sale agreement with Kian Joo Holdings to buy a 32.9% stake in KJCF for RM241.12mil or RM1.65 per share in April 2009 (go here). Subsequently, Kianjoo's managing director Datuk See Teow Chuan and 13 others filed a legal suit against Canone, claiming that the transaction was ‘’illegal’’. Is the Court about to rule in favor of Canone?


Chart 2: Canone's weekly chart as at August 12, 2010_10.20am (Source: Quickcharts)

Based on technical consideration only, Kianjoo & Canone could be good trading BUYs.