· SLP (Trading Buy, TP: RM1.94). SLP has been consolidating since the beginning of October after it attempted to break out from its all-time high at RM1.79 (R1). Based on our observation, the share price is forming a “Symmetrical Triangle” over the past few weeks and waiting for an opportunity to break out for another round of rally. Indicator-wise, Stochastic has rebounded from its oversold region and just performed a “golden crossover” yesterday while RSI is still hooking up, suggesting strong buying interest. Hence, we are issuing a “Trading Buy” on the stock with a target price of RM1.94, which is the measurement objective while a stop loss is placed at RM1.62 (3 bids below its historical onemonth low level of RM1.65).

· TOPGLOV (Not Rated). Yesterday, TOPGLOV closed 3.0 sen or 0.32% higher at RM9.28. The share price was observed forming a ‘Flag’ chart pattern, with the share price expected to further consolidate in the near term. The bullish outlook of the stock is intact with MACD indicator showing positive reading. Meanwhile, the buying momentum might take a breather with indicators nearing or being in the overbought territory, further evidencing the potential consolidation in the near term. However, we think that investors can take notice of any potential break-out from the ‘Flag’ chart pattern or RM9.55 level as an entry signal for the stock.

Source: Kenanga Research - 27 Oct 2015