Recall that on 5 Mar 2015, we issued a “Trading Buy” call on SCGM with a TP of RM2.73 after the share price broke out from the resistance level of RM2.35. Since then, the share price has rallied to meet our TP yesterday, translating to a gain of 11.4% within a one-month time frame. Chart-wise, the underlying uptrend remains intact as the share price is currently trading above all its key SMAs. Stochastic indicator has emerged from the oversold territory, and coupled with increasing daily trading volume, this indicates that the buying momentum is piling up. We reckon that another round of rally could be underway after the two-week consolidation period. Thus, we are upgrading our TP from RM2.73 to RM3.00 (R2) with a strict stop-loss at RM2.60 (3-bids below the immediate support level of RM2.63) to protect our previous gains.

Source: Kenanga Research - 3 Apr 2015