• Genetech Technology Berhad designs and develops both customized and standardized industrial automated equipment for high technology related manufacturing companies. It is also engaged in provision of integrated engineering solutions that incorporates mechanical, engineering and software functions.
• Technically, we are of the view that Genetec’s share price is likely to gain stronger momentum at an accelerating velocity as both daily and weekly charts show that (1) Bollinger band is widening; (2) price is trading above 10, 30, 50, 100 and 200 days and weeks Simple Moving Average; and (3) reading from MACD, RSI and Slow Stochastics is pointing to upside tendency.
• Moreover, share price has been riding above the Ichimoku Cloud in daily chart. Coupled with Rectangle pattern breakout in daily chart, we are looking at target prices of RM0.205, RM0.22 and RM0.235. Supports are pegged at RM0.18 and RM0.175, with cut loss at RM0.17.

Source: Hong Leong Investment Bank Research - 15 Oct 2015