Despite the local bourse being overshadowed by negative sentiment, we believe some stocks are still offering opportunities benefiting from the strengthening of US dollar. Chart-wise, USDMYR has broken out from its Pennant chart to close above all its key SMAs. Despite both RSI and Stochastic indicators are already in the overbought zone, MACD is still expanding further from the Signal line, indicating that the bullish momentum remains intact. In short, the USRMYR is looking to rally towards its immediate resistance at RM4.4401/USD and hence, we are featuring some export-oriented manufacturers (i.e. gloves and Plastic packaging plays), being the main beneficiaries of the stronger Greenback as their technical pictures are also deemed compelling at current levels.

· TOPGLOV (Trading Buy, TP: RM8.50). TOPGLOV’s share price retreated slightly by 1.4% to close at RM7.99. In terms of chart outlook, the share price has formed a descending triangle pattern, in which we expect a potential rebound in share price should it break out from the triangle pattern. Meanwhile, negative key indicators were noted, with both RSI and Stochastic Indicator heading downwards. Although MACD remains below its positive Signal line, it is picking up, suggesting a possible reversal in trend. Hence, we are looking for breakout from the triangle pattern which is also a good entry point for investors to accumulate the stock with the target price of RM8.50 (R2), while a strict stop-loss is placed at RM7.68 (S2).

· KOSSAN (Not Rated). Yesterday, it broke out from its multi-month resistance-turned-support level to close at its all-time high of RM7.57. Chart-wise, KOSSAN has been trending upwards since early 2015 while key indicators such as MACD is trading above its positive Signal line while RSI depicted strong upward movement. As such, should the buying interest persist and share price maintain above its immediate support level of RM7.46, we expect it to test the next resistance level of RM8.15 (R1). · SLP (Not Rated) is hovering near its mean regression line. Key momentum indicators such as RSI and Stochastics are retreating from the overbought territory, suggesting a healthy short-term consolidation. Nevertheless, we continue to like SLP as the primary trend remains up as well as the fact that it should benefit from the underlying trend of weakening in MYR against USD. Thus, we view that the current share price of RM1.67 offers a good entry point with potential upside of 14.0 sen to RM1.81 (R1). Meanwhile, a strong support is pegged at RM1.58 (S1).

· SCGM (Trading Buy, TP: RM2.62) is consolidating close to the support level of RM2.50 (S1). To recap, we featured SCGM on 11 Sep 2015 when the share price traded near the uptrend line support of RM2.38 (S2). The underlying trend remains up as the share price is well-supported by all SMAs. Moreover, we believe that SCGM, being one of the key beneficiaries of the strengthening USD against MYR, could potentially trend higher towards RM2.62 (R1) and RM2.74 (R2) next should the buying momentum pick up. Thus, investors may look to accumulate SCGM close to RM2.50 (S1) level.

Source: Kenanga Research - 29 Sep 2015