• Technical BUY on breakout with +21.4% potential return
• Last price: RM1.15
• Target price: RM1.31, RM1.42
• Support: RM1.08
• Stop-loss: RM1.07

BUY on breakout with a target price of RM1.42 and stop-loss at RM1.07. Based on the daily Ichimoku chart, the stock continues to form higher highs and higher lows, a key characteristic of an uptrend pattern. The buying signal is intact as share price has just penetrated above the cloud and is supported by the Heat Wave indicators – the Tenkan-sen line, the Kinjun-sen line and the Chikao span line – which are showing bullish signals. This is supported by an uptick in RSI and bullish crossover in MACD and DMI. We peg our targets at RM1.31 and RM1.42 in the near to medium term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 15 Sept 2017