• ES Ceramics Technology Berhad (ESCERAM), through its subsidiaries, designs, develops, and processes specialty advanced ceramic materials. The company also develops and manufactures specialty advanced ceramic products.
• The stock is in a well-established uptrend. Recent retracement near RM0.30 (23.6% FR) presents a good trading opportunity. Yesterday’s rebound from the uptrend depicted a potential resumption of uptrend. Moreover, bullish reading from MACD, RSI and Slow Stochastics provides ammunition to the buying momentum.
• In tandem with the bullish view on ACE market (refer to Trading Idea), we are targeting RM0.34 (Upper Bollinger band) and RM0.36, with a long-term objective of RM0.38. Immediate supports are pegged at RM0.31 (10-d SMA) and RM0.30. Cut loss below RM0.29.

Source: Hong Leong Investment Bank Research - 19 May 2015