· PCHEM (TB, TP: RM RM6.82) has been trading at the range of RM5.83-RM6.34 for the past 2 months, while a “Triangle” chart pattern is taking shape. The share price firmed up 24 sen to settle at RM6.32 yesterday, which surpassed all 3 SMA. Indicator-wise, uptick in both Stochastics and RSI, coupled with MACD indicator has performed a positive crossover the Signal line, implying the positive buying sentiment. As such, we are placing a “Trading Buy” call on PCHEM, which anticipating a high volume breakout above strong resistance level of RM6.34 with a target price of RM6.82 (based on 3 bids below objective measurement). Meanwhile, a strict stop-loss of RM6.00 (S1) should be placed.

· Keep a close watch on.... We noticed that MISC (NR) and WPRTS (NR) are consolidating and could potential provide trading opportunities to investors. Chart wise, MISC is trending in the downtrend for the past two months and approaching strong support level of RM7.55 (S1). On the other hand, WPRST is capped in the range of RM4.17-RM4.50 and it is hovering around the -2SD regression level as well as close to support level of RM4.17 (S1). As such, we advocate investors to watch out for reversal signal before entering the stock. Do note that the key support level would be the good entry price for MISC (@ RM7.55 (S1)) and WPRTS (@ RM4.17 (S1)).

· SKPETRO (NR). To recap, we have featured SKPTERO on 23 Jun 2015 where it appears to have consolidated and formed a “Wedge” chart pattern. Our technical view is still valid and we believe that the current price level is a good entry point for investors to accumulate on this counter, while conservative traders should look out for a technical breakout from its “Wedge” chart pattern with high trading volume in the short to medium term.

Source: Kenanga Research - 1 Jul 2015