• MYEG (TB, TP: RM3.00) yesterday inched 2.0 sen or 0.75% to close at RM2.68. The share price is gaining momentum after asteep sell-down end of April. Chart-wise, MYEG has formed a strong uptrend support level while we observe that the shareprice would stage a reversal each time it touches the aforesaid level. Besides, key indicators such as RSI and Stochasticindicator are reinforcing the rebound play hypothesis as the former has emerged from its oversold territory. With the anticipationthat the share price will continue to rally on a rebound play, we are calling a “Trading Buy” on stock with a Target Price ofRM3.00 (which is its long-term resistance level) with a strict stop-loss placed at RM2.54 (S1).
• HOVID (Close Position) has been consolidating since April after peaking at a high of RM0.565. Recall that we issued a “Trading Buy” on the stock on 3 June based on strong rebound from a descending triangle pattern. However, the share pricedid not perform according to our expectations but has continued to hover at its downward mean regression line. Hence, wedecided to close position given that our previous technical outlook is deemed invalid and will revisit the stock once it becomestechnically attractive again.

Source: Kenanga Research - 16 Jul 2015