We are featuring beverage counters, in particular, OLDTOWN and PWROOT which technical charts caught our interests. On the flipside, we are relooking on SCGM where current share price offers a good buying opportunity.

· PWROOT (Not Rated). Recall that on 7 Aug 2015, we issued a Trading Buy call on PWROOT when the share price broke above the key resistance of RM2.43. However, PWROOT was subsequently hit by heavy profit-taking activity as well amid poor market sentiment. Its trading pattern has been particularly choppy in recent weeks, but most importantly PWROOT has managed to reverse from the strong support level of RM2.02 (-2SD regression level coincides with +61.8% Fibonacci Retracement level). The share price rose 2.0 sen to end at RM2.24 yesterday. In addition, both RSI and Stochastics are inching upwards, which coupled with MACD histogram indicates that the current up-cycle still has further distance to go. Hence, we suggest that traders should keep an eye on the stock for a more meaningful rebound, i.e. towards the recent high of RM2.43 (R1). Meanwhile, immediate support could be found at RM2.10 (S1).

· OLDTOWN (Not Rated). OLDTOWN lost more than 50% of its value from the Jun 2013’s high. However, the share price has gained some support at the low of RM1.26. The Stochastic and RSI indicators have also hooked up from deeply oversold region to herald the start up an upcycle while the MACD histogram is indicating a shift of momentum from bearish to bullish. That said, as the share price is still trading in a downtrend and the SMAs are still stuck in a "Death Cross", we reckon that investors who are still holding on to this stock should take the opportunity to sell into strength, closer to the RM1.55 level. Only a break above the RM2.00 levels would allow the overall trend to turn bullish.

· SCGM (Trading Buy, TP: RM2.62) Recall that on the 14 Aug 2015, we called a technical buy on this stock at RM2.41. Since then, the share price has been rising fairly slowly. Recall that after the stock rose to a high of RM2.55, it retreated to the uptrend’s line support of RM2.38 (S1). However, we continue to like the stock as the underlying trend remains up. Should buying interests kick in, the share price could potentially rally towards immediate resistance of RM2.50 (R1) and RM2.62 (R1) next. As such, we advocate that traders should look to accumulate this stock with a stop-loss at Fibonacci Retracement support level of RM2.25 (S2). 

Source: Kenanga Research - 11 Sep 2015