• Since tumbling from the peak of RM0.705 on 24 July 2015 to yes terday’s low of RM0.555, we deem the heavy selldown as “selling climax” which could expect share price to stage a technical rebound to compensate for the oversold condition. As we can see from hourly and daily charts, the stock is likely to bottom out from oversold situation while share price is cushioned by the firm support near RM0.55 on hourly and daily chart respectively.
• Oscillator-wise, reading from hourly and daily RSI, MACD and Slow Stochastics showed that selling pressure is fading, attracting more bottom-fishing interests. Hence, we are looking at target levels of RM0.61, RM0.645 (10-d SMA) and RM0.66.
• However, always prepared to set cut loss if situation changes. Support at RM0.56 with cut loss at RM0.54.

Source: Hong Leong Investment Bank Research - 11 Aug 2015