• Technical BUY on breakout with +12.5% potential return
• Last price: RM1.26
• Target price: RM1.38, RM1.44
• Support: RM1.19
• Stop-loss: RM1.18

BUY on breakout with a target price of RM1.44 and stop-loss at RM1.18. Currently, the stock is trading sideways at RM1.19-1.27 and we expect it to chalk a higher high once it breaks above RM1.28. This is supported by the 7-day EMA crossing above the 21-day EMA, which indicates a bullish signal. This is also consistent with the uptick in the RSI, which suggests stronger buying momentum ahead. Additionally, the bullish crossover in +DI and ADX line suggests strong upward movements. We peg our targets at RM1.38 and RM1.44 in the near term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 25 Aug 2017