• Technical BUY on breakout with +21.3% potential return
• Last price: RM1.95
• Target price: RM2.22, RM2.39
• Support: RM1.81
• Stop-loss: RM1.79

BUY on breakout with a target price of RM2.39 and stop-loss at RM1.79. Based on the daily chart, the stock has been trading above the BBI line. Given the profit-taking on last Friday‘s movement, SCGB rebounded on yesterday’s gain and established a new up-leg. Persistent buying interest is seen in the rise in RSI and MACD should drive share price higher. This is also supported by a bullish crossover in the DMI. We peg our targets at RM2.22 and RM2.39 once the stock penetrates the breakout level of RM1.97.

Expected Timeframe: 2 weeks to 2 months.

Source: UOB Kay Hian Research - 24 Jul 2018