· PWROOT (TB, TP: RM2.68). Yesterday, PWROOT closed at an all-time high of RM2.47 (+5.0 sen or 2.07%), supported by a surge in daily trading volume. Chart-wise, the share price broke above the key resistance level of RM2.43 and a “Rounding Bottom” chart pattern has been formed. Despite the Stochastic in the overbought territory, the MACD histogram and RSI are trending upwards further, portraying the strong buying momentum. Moreover, the primary trend of PWROOT remains up as the share price is well-supported by all SMAs. We reckon that the share could rally towards RM2.68 (R1) level should the buying interest continued to gain traction. As such, we are issuing a “Trading Buy” call on PWROOT with a target price of RM2.68 (R1), while a strict stop-loss is placed at RM2.28 (S1).

· EATECH (Take Profit @ RM1.40). To recap, we issued a “Trading Buy” call on EATECH on 15 Jul 2015 where the share price broke out from a “Symmetrical Triangle” chart pattern. Within one month, the share price has rallied and surpassed our target price of RM1.40. Currently, the key momentum indicator such as Stochastics is deeply overbought, while the daily trading volume is decreasing, implying that the share price could consolidate in near term. With the Brent crude oil price breaking below USD50.0/bbl level as well as the less attractive technical picture at this juncture, we are “Taking Profit” on EATECH. We may revisit the stock should the technical picture turns bullish again.

· IOI (Take Profit @ RM4.13). Recall that we issue a Trading Buy call on IOI back in 25 Jun 2015 with a TP of RM4.39. However, the share price only managed to climb up to RM4.13 as it formed a strong resistance at the foresaid level. The share price has since traded sideways within a range of RM4.05-RM4.31. Trading volume has also been declining since our Trading Buy call, while both Stochastic and RSI indicator are also hooking downwards, suggesting that the stock could consolidate further. As we deem that the share price lack investors interest with a dull technical picture, we are closing our position on the stock while locking in a mere gain of 2.0%.

Source: Kenanga Research - 7 Aug 2015