• I-Berhad, through its subsidiaries, operates in property development and property investment. The Group is also engaged in retail sales and promotion of digital products and household electrical appliances, advertising agent, advertiser and advertising contractor. The tourism components of i-City comprise shopping mall, city walk, animation studios, riverfront and city of digital lights.
• Since the sharp drop in share price from the peak of RM1.32 on 3 Sep 2014 to low of RM0.515 on 16 Dec 2014, the stock is grossly oversold, indicating a possible resumption of uptrend as “Positive Divergence” pattern formed on daily chart points to potential reversal. In addition, “Hammer” candlestick pattern on weekly chart indicated reversal signal. We opine that buying is likely to gain momentum, as substantiated by its widening Bollinger band on daily chart.
• Noticeably, daily and weekly oscillators (RSI, MACD and Slow Stochastics) show that share price is bottoming up amid strong buying strength. Further upsides are targeted at RM0.66 (100-d SMA) and RM0.70 (23.6% FR), with a long-term objective of RM0.755 (weekly Upper-Bollinger band). Supports are pegged at RM0.63 (daily Upper-Bollinger band) and RM0.615. Cut loss below RM0.60 (daily Lower-Bollinger band).

Source: Hong Leong Investment Bank Research - 2 Mar 2015