SAPRES (Stopped Out). To recap, we previously issued a buy call on SAPRES after the share price surged on the back of strong volume to rebound from its prolonged consolidation phase. While we had expected follow-through buying interest to rally the share price to retest its previous high level of RM1.73, the share price, however, did not perform according to our expectation as it plummeted on profit-taking activities to trigger our stop-loss target of RM1.29. Hence, we are forced to exit our position on the stock, but will re-look the stock once its technical picture turns more appealing again.

GADANG (Take Profit). Earlier last month, we recommended a Trading Buy on GADANG when the share price managed a resistance breakout (report dated 10 Dec 2015 @ RM2.10). The share price had since rallied to as high as RM2.58 (+22.9%) before the broad market weakness dragged down the stock in the past two weeks. Yesterday, the share price closed 13.0 sen (5.6%) down to RM2.18 as profit-taking activities intensified. With the sharp downward move, GADANG has broken below its medium-term trend-line. From here, we expect further weakness ahead in tandem with the Stochastic indicator which has turned bearish. Hence, we suggest that traders take some money off the table for now, and only revisit the stock when the technical outlook turns more favourable.

Source: Kenanga Research - 22 Jan 2016