· GOB (Not Rated). Last week, GOB announced that its wholly-owned subsidiary, Equine Park Country Resort Sdn Bhd is selling the 5-storey shopping mall, Damen USJ to PAVREIT. Yesterday, it made a huge leap to close at RM0.57, with tremendous spike in trading volume. Chartwise, the share price is trading above all the key SMA levels. It shot up before reversing to settle at its resistance-turned-support level, suggesting price-action uncertainty. In terms of key indicators, although MACD remains above its positive Signal line, both RSI and Stochastic indicators showed that the stock has entered overbought level, indicating potential correction. Hence, should the buying momentum escalate further and the share price remains above its immediate support level of RM0.57, we expect a push towards RM0.60 (R1), while the support level is capped at RM0.54 (S1).

· UEMS (Not Rated) lost approximately 50% of its value from the high of RM1.40 in merely 5 months. What caught our interest was that the share price has broken above the downward-sloping resistance level with a surge in volume, while a bullish “Flag” pattern has been formed. This could indicate that the sentiment for this stock has turned positive and an uptrend is underway. On Wednesday, UEMS rose 7.48% or 8.0 sen to RM1.15. Despite the MACD histogram widening, both Stochastic and RSI are inching into the overbought territory, suggesting that a short consolidation is imminent. All in, should the buying interest persist, we reckon that the RM1.25 and RM1.31 levels should make decent targets. Traders who are keen to buy into the stock may do so between RM1.03 – RM1.06, while a tight stop loss of RM1.00 should also be placed just below the trend line resistance-turned-support. 

Source: Kenanga Research - 25 Sep 2015