· PRLEXUS (Trading Buy, TP: RM3.18). Following the steep decline in August, PRLEXUS was quick to regain lost ground. However, it wasn’t until yesterday that the share price finally broke above its all-time high registered in July (RM2.73). The share price ended the day up by 9.0 sen at RM2.75 on volume almost twice its 30-day moving average. In fact, an “Ascending Triangle” pattern has also been confirmed on the daily chart, which led us to expect further gains ahead. With that, we recommend a Trading Buy on the stock, with a measurement objective of RM3.18. Meanwhile, we advise traders to also adhere to a conservative stop loss of RM2.54 just below the neckline support (S1).

· EWEIN (Take Profit @ RM1.10). Recall that we had earlier issued a trading buy call on this counter (RM0.90 @ 29-Oct), when its share price was poised to stage a breakout from its resistance level of RM0.90 and complete its ‘Rounding Bottom’ chart pattern by trending towards its 5-month peak of RM1.09. Since then, the share price has performed accordingly while staging a breakout from its previous high level of RM1.09 to settle at RM1.10 yesterday. We are taking this opportunity to lock in a profit of 22.2%. We may review the stock again if the stock manages to neutralise its deep overbought situation (RSI and Stochastic).

· VS (Close Position @ RM1.58). Following our Trading Buy call last month (RM1.52 on the 20th of Oct), VS had climbed to a fresh all-time high RM1.62 last week. However, the share price ended at RM1.58 (down by 1.0 sen) with trading volume seemingly dissipating, yesterday. Chartwise, the MACD is showing signs of bearish divergence, indicating a loss of momentum. This comes despite the successive highs registered by the share price over the past two months. We view this as a sign that the bullish trend is nearing an end and as such, we suggest caution moving forward. For the purpose of our model portfolio, we are closing out our previous trading buy position to net in a marginal gain of 6.0 sen (3.9%). 

Source: Kenanga Research