HEIM (Trading Buy, TP upgraded to RM18.79). HEIM recently recorded a strong earnings report card boosted mainly by higher sales, better product mix and operating efficiency. As a result, the share price has garnered strong investors’ interest again to rally 58.0 sen (3.43%) to settle at RM17.50, surpassing our TP and staged a breakout from its ‘Triangle’ chart pattern. With its primary trend still positive on the back of bullish MACD convergence, we are revising our TP to RM18.79 (4 bids below our new ‘flagpole’ measurement objective of RM18.87). Meanwhile, our stop-loss level is now placed at RM17.02 (4 bids below its new support level of RM17.10 (S1)) to secure our previous gains. Resistance levels are seen at RM17.90 (R1) and RM19.00 (R2), while key supports are now envisaged at RM17.10 (S1) followed by 16.40 (S2).

OCK (Take profit). Recall that we last highlighted OCK back in April after the share price broke out of its RM0.75–RM0.78 consolidation zone. Since then, the share price has succumbed to profit taking on every attempt at the RM0.84 resistance level. Over this period, trading volume also tapered while the MACD has been showing clear signs of bearish divergence. Unless and until the RM0.84-resistance level is taken out in a decisive manner, the technical outlook is likely to deteriorate further. As such, we suggest investors TAKE PROFIT for now, and only revisit the stock once the aforementioned buy signal is triggered. Immediate resistance levels are RM0.84 (R1) and RM0.88 (R2). Downside support levels are RM0.80 (S1) and RM0.77 (S2) further down.

Source: Kenanga Research - 20 Jul 2016