To highlight briefly, we observe the recent bashed down on AXIATA (NR) and CIMB (NR) could offer a potential trading opportunity for investors who look to buy into the stock. AXIATA has recently been consolidating above its key support level of RM6.40 with key indicators trending away from their oversold region, offering potential trading entry point near the RM6.40 level (please refer to Figure 1 for technical details). Meanwhile, CIMB continues to trend down further towards its strong support level of RM5.18 with its momentum indicators also in the oversold region (Figure 2). Shall the share price consolidate towards RM6.40 and RM5.18 for AXIATA and CIMB, respectively, investors should keep an eye for a reversal signal to confirm a rebound play before entering the stock. On the other hand, we are cutting loss on two counters which had undergone huge sell-down by the market recently. The two stocks are:

• MMSV (Stopped-Out). To recap, we previously issued a “Trading Buy” call on MMSV on 3 Jun 2015 based on strong reversal signals observed. However, as strong selling pressure emerged on small caps, MMSV’s share price was bashed down as well and it hit our stop loss of RM0.75 (Figure 3). Hence, we decided to cut loss and will reconsider if the technical picture becomes compelling again.
• EVERGRN (Stopped-Out). To recall, we issued a “Trading Buy” call on EVERGRN on 9 Jun 2015 where the rounding bottom chart pattern is formed with the share price breaking to above its 3-month high. With the poor market sentiment, the share price has been retrenched and hit our stop-loss level of RM1.25 (Figure 4). As such, we forced to close position on EVERGRN. 

Source: Kenanga Research - 17 Jun 2015