· SLP (Take Profit @ RM1.94). To recall, we previously issued a Trading Buy call on SLP (15-Oct 2015) with a target price of RM1.94 as we anticipate a potential technical breakout from its ‘Symmetrical Triangle’ chart pattern. As per our expectations, the share price indeed staged a breakout and rallied further on follow-through buying interest. On Monday, SLP surged to reach our TP (intraday high of RM1.94) before closing the session at RM1.88, after news reported that the company is in prime position to benefit from the recent dip in resin prices and weaker Ringgit. In view of waning key momentum indicators (rolling over of RSI, and Stochastic from its overbought threshold) which suggest possible consolidation in the near-term, we are taking this opportunity to lock in our profit of 12.1%. Meanwhile, we will re-look the stock once its technical picture turns compelling again.

· UEMS (Take Profit @ RM1.36). UEMS has been trading along its uptrend channel since our Trading Buy call issued on 15-Oct-2015 (with a Target Price of RM1.37). The share price climbed to an intraday high of RM1.36 on Monday (just 1.0 sen shy of our TP of RM1.37) before settling at RM1.33. The reversing Stochastic from its overbought region and hook-down in RSI caught our attention, implying a possible retracement to neutralise the overbought situation in the near-term. In view of the possible downside, we are taking profit on the stock at RM1.36 while we will relook its technical position at RM1.26-1.30 in the future.

Source: Kenanga Research - 11 Nov 2015