TGUAN (Not Rated). Earlier in May, TGUAN began a strong rally from RM3.06 to RM3.86 after the company reported strong 1Q16 earnings, which jumped 182.3% (RM13.1m). After the initial euphoria, the share price subsequently consolidated sideways with a downward bias over the following two weeks. Nevertheless, strong buying interest returned yesterday with a 10.0 sen climb (2.6%) to RM3.89. As a result of the strong gains, the share price has broken out of a “Bullish Flag” pattern. This indicates that the share price is poised to resume its prior uptrend after pausing for a breather. From here, we expect the share price to climb gradually towards the RM4.50 “Flagpole” measurement objective. Resistance levels to look out for are RM4.10 (R1) and RM4.26 (R2) while support levels are pegged at RM3.80 (S1) and 3.40 (S2).

TADMAX (Not Rated). TADMAX has been on a medium-term uptrend since August last year. During this period, the share price almost doubled from its RM0.21 low to as high as RM0.40 in April. After a brief pullback to the trend-line recently, TADMAX is now in the midst of retesting its RM0.40 high. It gained 4.0 sen (11.1%) yesterday to RM0.40 on high trading volume. Indicator-wise, the MACD has also crossed above the signal-line to reflect a shift in momentum from bearish to bullish. On balance, the technical readings suggest a likely break above this RM0.40 level soon. Should this be the case, traders may then look forward to RM0.44 (R1) and RM0.47 (R2) as the next target levels. The bullish technical picture is deemed intact until and unless the trend-line at RM0.34 (S1) is violated in a decisive manner. In which case, the next support level is located further down at RM0.28 (S2).

Source: Kenanga Research - 17 Jun 2016