Due to the sell down in the local market amid rising concerns over the slowdown in the world’s second biggest economy, we are forced to stop out on four invested counters as they all triggered their respective stop-loss levels. We were stopped out in FLBHD (Stopped Out @ RM1.55), as the share price had plunged below its ‘Cup and Handle’ chart pattern as well as all its SMA levels. Technical picture on the stock looks bearish from here as all its momentum indicators are trending south, while the share price looks to find a footing at its immediate support level at RM1.40 (S1). Moving on, we are stopping out on QL (Stopped Out @ RM4.00) which we had placed a Trading Buy call back in 31-Jul underpinned by a technical breakout from its all-time higher level. Since the break out, the share price had then consolidated and subsequently gapped down below all its key SMA levels during yesterday’s trading session. Immediate support is pegged at RM3.89 while near-term outlook for the stock remained bearish on the back of negative trend on the momentum indicators.

As investors continue to focus on the selling side in anticipation of weaker market sentiment, we have reviewed our existing portfolio and were forced out on JERASIA (Stopped-out @ RM0.81) and JCY (Stopped-out @ RM0.70). Recall that we issued a “Trading Buy” call on JCY on 4 August when the share price broke out from its downtrend line resistance, forming a “Flag Shape”. Subsequently, we issued another “Trading Buy” call on JERASIA on 6 August where reversal signals were observed. Unfortunately, both stocks did not perform according to our expectations and had undergone heavy sell-down by market participants for fear of further decline. We will re-look into these four counters once their technical picture turned compelling again. 

Source: Kenanga Research - 11 Aug 2015