SCGM has recently broke out from a ‘Flag’ chart pattern post its consolidation phase. Despite the share price already surged ahead with some gains, the uptrend remained intact from here as it settles above all key SMA levels. Besides, key indicators are also looking bullish with its Stochastic reversing from its oversold region, confirming the reversal pattern. Meanwhile, RSI indicator is also on an uptrend implying that buying momentum is picking up. With follow-through buying interest, we reckon that the share price could potentially retest its all-time high level of RM2.50 and maybe towards our ‘Flagpole’ measurement objective of RM2.75 does it break out from this level, a strict stop-loss should also be placed at RM2.26 (3 bids below the 20-day SMA level) for momentum traders.

Source: Kenanga