Recall that on the 3rd of April, we had revised the TP for SCGM to RM3.00 in view of its technical break out from the ‘Pennant” chart pattern. Despite hitting our TP yesterday, we decided to upgrade our TP to RM3.41 in view of: (i) the fresh bullish breakout from its all-time high resistance level of RM2.95, (ii) a breakout from its upper Bollinger band, and (iii) rebound play from its -2SD regression level. Despite the overbought situation shown in the Stochastic, both momentum indicators are trending up strongly, implying eager buying interest among investors. While we do not discount the possibility of some slight consolidation in the near-term, we still view that the share price could rally further towards its +2SD regression level.

Source: Kenanga Research - 4 Jun 2015