· CIMB (TB, TP:RM5.84). To recap, we issued a “Not Rated” call on CIMB yesterday, highlighting that investors should keep an eye on the stock for a reversal signal to confirm a rebound play prior entering the stock. As expected, the reversal signal is confirmed today with a surge in share price by 18.0 sen to RM5.53, staging a breakout from its 20-day SMA level as well as its +2SD regression level with strong trading volume to confirm the reversal signal that we have been looking for (Figure 2). All key indicators (Stochastic and RSI) are heading north with MACD cross above its signal line. In view of robust buying interest, we place a “Trading Buy” call and expect share price to rally towards its 100-day SMA level of RM5.84 (R2), while we place a strict stop loss at RM5.40 (S1).

· HARBOUR (TB, TP:RM3.15). HARBOUR (a resilient counter benefiting from the major SCORE project in Sarawak) has surged 9 sen or 3.59% to stage a technical breakout from its ‘Flag’ chart pattern, settling at RM2.60 (Figure 3). The underlying trend looks positive from here as all its SMA level is trending upwards. The uptick in indicators suggests the inclined in buying momentum to lay a hand on the bullish-bias outlook. Despite the key momentum indicators (Stochastic and RSI) are already in the overbought region, we considered it as a norm as the indicators usually trend around this level, historically. Should follow-through buying interest persist, we reckon that the share price could potentially rally towards our ‘Flagpole’ measurement objective of RM3.15 in the near-term.

· To keep a lookout…we observe that technical pictures of SCGM (TB, TP upgraded to RM3.77) and MYEG (NR) seem compelling and could potentially offer trading opportunities for investors. SCGM announced a strong FY15 earnings result of RM15.6m (+36.2% YoY) last night. To recap, we had previously issued a “Trading Buy” call on SCGM on 4 Jun 2015 with a higher target price of RM3.41. Should buying interest persist on this rising momentum, our initial TP of RM3.41 is achievable as we expect the share price to potentially rally towards our new “Flagpole” measurement objective target price of RM3.77 in the near term (Figure 4). On the other hand, we view that MYEG could offer a good trading opportunity for traders as MYEG had rebounded from its recent sell-down to break out from its near-term SMA level, confirming the trend reversal (Figure 5). Besides, we reckon that the recent sell-down poses potential cheaper entry levels for traders who are looking to buy into the stock. 

Source: Kenanga Research - 18 Jun 2015