• Icon Offshore Bhd (ICON) is a pure-play offshore support vessel (OSV) provider in Malaysia. The Group provides a wide range of logistical support services throughout the entire offshore oil and gas life cycle, from exploration and appraisal, field development and operation and maintenance, through to decommissioning.
• Since its listing, share price tumbled 72% to recent low of RM0.615 on 7 Jan 2015. Thereafter, “Ascending Triangle” pattern formed on daily chart suggests potential bottoming up. Yesterday’s closing price at RM0.78 initiated Ascending Triangle breakout, indicating stronger bullish momentum.
• Noticeably, reading from daily oscillators shows bullish strength at accelerating velocity. Coupled with high volume for 2 consecutive trading days, our target price projection is pegged at RM0.84 (50-d SMA) and RM0.87, with a long-term objective of RM0.915 (price target for Ascending Triangle breakout).
• However, always prepared to set cut loss if situation changes. Support at RM0.765 with cut loss below RM0.74.

Source: Hong Leong Investment Bank Research - 11 Feb 2015