OCEANCASH PACIFIC BERHAD (0049)

Source: MSSB Research

Technical Commentary

Oceancash has retested the RM0.335 level for a few times since April 2014. Two days ago, the price successfully breached above the RM0.335 resistance level with high volumes. The MACD indicator has expanded positively above zero, but the RSI is slightly overbought presently. Buying momentum could pick up in the medium term after a short consolidation phase.

Strategy

Traders may take a position above the RM0.335 level, with the price target envisaged around the RM0.43 level as the MACD indicator is trending higher. Meanwhile, cut loss will be triggered if the price falls below the RM0.31 level.

Stock Information

Oceancash Pacific is principally engaged in the manufacturing and trading of nonwoven fabrics and felts.
Its nonwoven fabrics include air-through bonded nonwoven fabric and thermal bonded nonwoven fabric which are used in disposable hygienic products, such as top-sheets, second layer, acquisition distribution layer (ADL) and back-sheet for diapers, sanitary napkins, wet wipes, and surgical apparels, including caps, masks, and gowns.

Its felts include resinated and thermoplastic felts for heat insulation and sound insulation, which includes interior and exterior trims in automobiles, noise dampener for compressors of split unit air conditioners and insulation in buildings including roofs, walls, partitions, and carpet underlay. Its resinated and thermoplastic felts can also be used for thermal and acoustic applications. The Group also provides die-cutting services for its customers who require a specific shape for the felts.

Source: MalaccaSecurities Research - 28 Aug 2014