KESM (Stopped Out). On 12-Jan-16, we recommended a Trading Buy call on KESM after the share price staged a breakout from its resistance-turned-support level of RM0.48 on the back of strong trading volume. Since then, the share price had failed to perform according to our expectation as it gapped down to reach our stop-loss level of RM5.45 during yesterday’s trading session. Key momentum indicators such as RSI and Stochastic are also rolling over from their respective overbought territory, while MACD has also staged a bearish crossover to lend a hand on the bearish bias outlook. With that, we are forced to stop out on the stock while we will continue to monitor its share price movement to look for a re-entry point.

TOMYPAK (Close Position). Recall that we previously issued a Trading Buy call on TOMYPAK (23-Dec-15), after the share price staged a strong rebound play post its consolidation phase. The share price since rallied for a few days before undergoing another stage of consolidation. Yesterday, the share price gapped down to settle below its short and medium term SMA level amid a sell-down in the local bourse. Lacklustre key momentum indicators are also suggesting that the stock could be poised for further sideways trading in the near-term. As our previous technical view has been nullified, we opt to close position on the stock while waiting for another compelling position to re-enter again. 

Source: Kenanga Research - 19 Jan 2016