SCGM gained 11.0 sen yesterday on stronger trading volume to close at RM2.40. From the technical perspective, a “Flag” chart pattern has taken shape and the share price has staged a breakout from the pattern at RM2.29. Overall trend looks bullish with MACD turning upward while being on the verge of staging a positive crossover the Signal line. After the weakening of the momentum towards the end of August as shown by the indicators, the Stochastic and RSI indicators are seen turning back upwards signalling that buying momentum is gathering steam once again. Traders should aim to take profit at RM2.78 (R1) (3-bids below flagpole measurement objective) while employing a strict stop-loss at RM2.19.

 

 

Source: Kenanga