• Technical BUY on breakout with +12.8% potential return
• Last price: RM1.05
• Target price: RM1.17, RM1.23
• Support: RM1.00
• Stop-loss: RM0.995

BUY on breakout with a target price of RM1.23 and stop-loss at RM0.995. Based on the daily Ichimoku chart, the stock is making higher highs and higher lows, key characteristics of an uptrend pattern. A buying signal is seen as the stock is trading above the cloud while the Heat Wave indicators - Tenkan-sen line, Kinjun-sen line and the Chikao span line - are showing bullish signals. The bullish signal is also supported by the MACD and the ADX showing the start of an uptrend. We expect TOMY will continue the bullish movement once it manages to penetrate above the alltime high of RM1.08.

Expected Timeframe: 2 weeks to 2 months.

Source: UOB Kay Hian Research - 27 Jul 2017