SEACERA (Take Profit). Last Thursday (7-Jan-15), we recommended a ‘Buy’ call on SEACERA with a target price of RM1.32 after the share price staged a breakout from its ‘Bullish Flag’ formation. The share price then resumed its uptrend trajectory on the back of strong trading volume to achieve our target objective of RM1.32 by reaching an intraday high level of RM1.33 yesterday. It is currently overbought as measured by both RSI and Stochastics indicators, suggesting that upside could be limited from here. Besides, the share price could be capped by its all-time high price level of RM1.42 (R1). Hence, we are taking this opportunity to take profit on this stock, while we will review it once its technical picture turns compelling again.

FUTUTEC (Not Rated). For the day, trading volume hit a 9-month’s high with FUTUTEC’s share price gaining 8.0 sen (+4.7%) to RM1.78. The company has been in the limelight recently with its proposed acquisition of two construction firms for RM458m and a private placement of 100m new shares. Chart-wise, FUTUTEC is trading within a bullish “Broadening formation” over the past two years and is now in the midst of retesting its mid-2015’s high (RM1.84 (R1)). Traders should monitor for a price breakout (Buy signal) with potential upside targets at RM2.00 (R2) and RM2.50 (R3). Support levels are RM1.70 (S1) and RM1.57 (S2) with a suggested stop-loss at RM1.54.

Source: Kenanga Research - 12 Jan 2016