SCGM surged 16.0 sen (6.99%) to settle at RM2.45 yesterday. A “Pennant” chart pattern has formed in the daily technical chart, while the share price has broken out of the resistance level of RM2.35 with a spike in daily trading volume. Additionally, the MACD indicator is staging a crossover of the Signal line, while both RSI and Stochastics are hooking upwards, which suggest emerging buying interest. As we expect the share price to retest its previous high level and rally further on follow through buying interest, we are placing a “Trading Buy” on SCGM with TP of RM2.72 (R3). Meanwhile, a strict stop-loss level of RM2.33 (S1) is placed.

Source: Kenanga