· COASTAL (Take Profit @ RM2.12). To recap, we issued a Trading Buy call on COASTAL on 28 August 2015 with the expectation that the share price will rebound and break out from its 1-month’s steep downtrend resistance level. However, the share price underwent a month-long of sideway trading in the range of RM1.80-RM1.97. Yesterday, COASTAL hiked up to a day’s high of RM2.13 on the back of the recent surge in crude oil prices. Nevertheless, readings from key indicators such as Stochastic and RSI are turning negative, suggesting that traders are taking the opportunity to sell on strength. Thus, we are locking our gains on COASTAL for now as our technical target price has been met.

· LTKM (Stopped-out @ RM1.78). To recap, we had issued a Trading Buy call on 6-Oct-15 after the share price gapped up to break out from its multi-month downtrend resistance level previously. However, the share price went on downtrend movement subsequently to close at RM1.78, which fell below our stop-out level of RM1.78. Key indicators such as RSI and Stochastic are generally bearish, suggesting further downside. As the share price has fallen below our stop-out level of RM1.78 and given the negative set of indicators, we decided to close position on LTKM for now. We might revisit this stock if a technical breakout occurs.

· TEOSENG (Stopped Out @ RM1.58). We previously recommended a ‘Trading Buy’ call on TEOSENG when the share price appeared to set to ride on the recent hype on the rising egg prices to complete its ‘Rounding Bottom’ chart pattern. However, the share price failed to play out according to our expectations as it broke down from our stop-loss level of RM1.58 to form a ‘Cup and Handle’ chart pattern. On top of that, the price weakness could possibly be prolonged from here, underpinned by the neutralization process of both RSI and Stochastic from their respective overbought territory. Hence, we are stopping out on this counter but will re-look when the share price forms a more compelling technical picture. 

Source: Kenanga Research - 9 Oct 2015