ESCERAM (Stopped Out @ RM0.585). Recall that we last recommended ESCERAM at 13-July-2016 after it broken out of a brief consolidation between RM0.60-RM0.62. Since then, however, the share price had performed rather sluggishly on a downtrend, triggering our stop-loss level of RM0.595 a few days ago. Coupled with pessimistic showing from key-indicators (MACD and RSI), the previous technical reading is no longer intact. While yesterday’s white “Marubozu” candle-stick may signal a potential reversal, it has to take out its resistance level of RM0.64 (R2) convincingly before any gains can be considered sustainable. An immediate resistance level can be identified at RM0.625 (R1), with downside support at RM0.565 (S1) and RM0.53 (S2) further lower.

POHUAT (Not Rated). POHUAT had formed a ‘broadening formation’ chart pattern since March as it staged a rebound play from its support trend line by surging 7.0 sen (4.67%) to close at RM1.57. Based on its historical chart pattern, we observe that the share price would normally rally towards its resistance trend line whenever it stages a bullish reversal play. With the support of increased buying interest as showcased by the uptick in both RSI and Stochastic, we reckon that history could repeat itself with the share price trending higher towards RM1.64 (R1) and possibly RM1.72 (R2). Interested investors should take note of the stock’s key support levels which are located at RM1.49 (S1) and RM1.42 (S2).

Source: Kenanga Research - 4 Aug 2016