• Salcon Berhad is an investment holding and water and wastewater engineering company, which provides services in investment, design, construction, commissioning, operation and maintenance of water and wastewater treatment plants.
• Since we recommended technical buy on SALCON on 5 Feb 2015, share price surged 23% within 13 trading days! Thereafter, share price has retraced 12% to near support level of 38.2% FR (RM0.72), presenting a good trading opportunity. “Tweezers Bottom” pattern in the region of Lower-Bollinger band (RM0.725) on daily chart suggests reversal of recent retracement. Noticeably, “Positive Divergence” on hourly chart is poised to break above short-term downtrend of RM0.76.
• Breaching above RM0.76 could drive share price higher towards RM0.78 (200-d SMA) and RM0.80 (Upper-Bollinger band), with a long-term objective of RM0.85. Supports are located at RM0.74 (30-d SMA) and RM0.725 (Lower-Bollinger band). Cut loss below RM0.71.

Source: Hong Leong Investment Bank Research - 17 Mar 2015