• Technical BUY on breakout with +11.6% potential return
• Last price: RM1.28
• Target price: RM1.44, RM1.52
• Support: RM1.22
• Stop-loss: RM1.21

BUY on breakout with a target price of RM1.52 and stop-loss at RM1.21. A successful closing above the BBI line on yesterday’s movement suggests improving sentiment as GADG looks set to resume the upward movement after dropping from the previous high of RM1.37. This is supported by an uptick in the RSI. The MACD and DMI are showing a bullish crossover, which will support the upward momentum. We expect GADG to continue the upward movement once it breaks above the breakout level of RM1.29.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 24 Aug 2017