EVERGRN (Not Rated). EVERGRN’s share price rose sharply yesterday as the weakening Ringgit drew interest in export-related counters. For the day, EVERGRN was up by 6.0 sen (5.3%) to RM1.19 on heavy trading volume. Chart-wise, the share price had been on a downtrend since January, having lost as much as 41.2% from its RM1.70 high. The share price has since bottomed out at RM1.00, and now appears to be charting higher lows. In fact, yesterday’s bullish move marked a breakout of the RM1.10-RM1.15 congestion zone, with a “Rounding bottom” pattern beginning to take shape. From here, it is expected that the bullish momentum to continue, with upside targets at RM1.27 (R1) and RM1.35 (R2) next. Downside support levels are located at RM1.10 (S1) and RM1.00 (S2).

TUNEPRO (Take Profit). To recap, we recently issued a trading buy call on TUNEPRO (report dated 5 May 2016) after we observed that the share price could be poised for a technical rebound play from its uptrend channel support line. Yesterday, the share price surged strongly to reverse towards its uptrend channel resistance level (which coincides with our target price objective of RM1.50) before settling at RM1.46 (6.6%). Indicator-wise, RSI has trended up strongly albeit the Stochastic already venturing into the overbought zone. In view that the share price failing to breach the RM1.50 channel resistance level, we reckon that the share price could possibly look to stage a bearish reversal as per its historical trend. Given that our target objective of RM1.50 has been met and with a possible consolidation play on the cards, we opt to lock in a quick profit of 8.7% for now and will look out for any convincing technical breakout from the channel resistance. 

Source: Kenanga Research - 12 May 2016