• Technical BUY on breakout with +18.8% potential return
• Last price: RM1.14
• Target price: RM1.32, RM1.39
• Support: RM1.06
• Stop-loss: RM1.04

BUY on breakout with a target price of RM1.39 and stop-loss at RM1.04. Based on the daily chart, share price is currently making higher highs and higher lows, a key characteristic of an uptrend. The buying signal remains intact with the stock currently trading above the cloud. Heat Wave indicators - Tenkan-senline, Kinjunsen line and the Chikao span line - show bullish signals. This is supported by an uptick in the RSI and bullish crossover in the MACD and the DMI. We peg our targets at RM1.32 and RM1.39 once the stock penetrates the breakout level of RM1.17.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 11 Jul 2017