OPENSYS was down 0.5 sen (1.2%) to RM0.41 yesterday, on the back of average trading volume. Chart-wise, we are interested in the “Flag” pattern which suggests that an immediate or quick volume breakout could push the share upwards by 9.0 sen to RM0.50 (+22%). That said, key indicators are sluggish, inline with the lackluster market. MACD is below the Signal Line while RSI and Stochastic have fallen below Overbought levels. Should there be a pick-up in volume, we believe OPENSYS could rebound, based on our measurement objective of 9.0 sen, while there remains a strong support at the RM0.40 level. However, if there is no high volume breakout in the next few days, the share could look to trend further down to fill back the previous gap.

Source: Kenanga Research - 10 Jun 2015