· MINHO (Trading Buy, TP: RM1.36). Yesterday, its share price rose for the third consecutive days to settle at RM1.22, with strong buying volume. Chart-wise, it has broken out from its regression upper band and traded above its 20 and 50 days SMA levels, suggesting further upward potential. Key indicators are generally positive, with MACD trading above its positive Signal line while RSI is hooking upwards strongly. However, Stochastic has crossed above its overbought territory, signalling a potential reversal. Given that the stock has garnered buying interest, we advocate day traders to take the opportunity to accumulate this stock, as we expect a rally towards its immediate resistance level of RM1.36 (R1) while we place a strict stop-loss at RM1.15 (3 bids below support level of RM1.18 (S1)).

· TOMYPAK (Not Rated). Yesterday, TOMYPAK broke above its key resistance level of RM1.89 and registered an all-time high of RM1.95 (9.0 sen or +4.84%). The primary trend remains up, as the share price is well supported by all three SMAs. The surge in daily trading volume, coupled with MACD histogram is expanding further, suggesting bullish momentum. However, both RSI and Stochastic are heading into the overbought territory, hinting that a short-term share price consolidation may be in store. Thus, investors interested in TOMYPAK could look to chip in at the immediate support level of RM1.89 (S1), while immediate resistance is capped at RM2.04 (S1).

· GDEX (Take Profit @RM1.17) Recall that on 9-Sep, we placed a trading buy call on GDEX after the share price managed to stage a stronger rebound play from its support level at RM0.82. As per our expectation, the share price has reversed strongly towards our target price of RM1.14 to achieve a gain of 13.59% in two weeks. However, a ‘hammer’ candlestick has also appeared on the daily chart post its recent rally to suggest possible consolidation soon. Besides, key momentum indicators have also ventured into their respective overbought zone, which led us to favour a possible near-term consolidation soon. Thus, we are locking in our profit on the counter for now, while we will review our technical options once a more compelling trading picture arises. 

Source: Kenanga Research - 22 Sep 2015