· TEXCYCL (Trading Buy, TP: RM1.50). TEXCYCL has been taking a breather after surging to a high of RM1.32 a month ago. Yesterday, the share price staged a high volume breakout from its resistance-turned-support level of RM1.32 (S1) to settle at an all-time high level of RM1.38. Despite acknowledging that the key momentum indicators (RSI and Stochastic) are in deep overbought situation, we observe that these indicators have been persistently hovering around these levels during its recent surge and consolidation phases. The uptick in RSI and signal crossover by the Stochastic reinforces a view that the stock could potentially rally further towards our ‘Flagpole’ measurement objective of RM1.50 (R1) level in the near-term.

· HARTA (Not Rated). HARTA has staged a breakout from its ‘Triangle’ chart pattern by surging 23.0 sen (4.84%) to close at RM4.98. The underlying outlook appears positive from here, as the share price currently trades above all its key SMA levels. Besides, MACD has staged a ‘Golden Cross’, while RSI and Stochastic are ticking up to imply a build-up in buying momentum. If follow through buying interest emerge, the share price could look to retest its previous high level of RM4.98 (R1) before rallying to RM5.22 (R2) next.

· MINHO (Take Profit @ RM1.36) Recall that we issue a ‘Trading Buy’ call on Minho (22-Sep) after the share price staged a breakout from its +2SD regression level with higher trading volume. Since then, the share price has traded according to our expectation as it rebounded to climb towards our TP level of RM1.36 during yesterday’s intraday trading session. Hence, we are taking this opportunity to lock in our gain of 11.48% achieved within a 1-month period, while we will relook into this counter once its technical picture turns compelling again ( all its key momentum indicators are currently neutral). 

Source: Kenanga Research - 21 Oct 2015