TMCLIFE (Take Profit). Recall that we had previously recommended a Trading Buy call on TMCLIFE (report dated 7th June) after the stock staged a technical breakout from a “Bullish Flag” chart pattern. The stock had trended up gradually and surpassed our target price of RM0.935 by closing at RM0.955 yesterday. With key momentum indicators such as RSI and Stochastic are now in the deep overbought territory, we opt to take this opportunity to take profit on the stock to record a gain of 11.9% over the period of two months. We will re-look on the stock once the stock neutralises its overbought condition and seeking another compelling re-entry point.

OLDTOWN (Stopped-Out). OLDTOWN was not spared the “rotational sell-down” over the past week. Yesterday alone, the share price plunged to as low as RM1.71 (-11.0 sen) before paring losses to RM1.76 (-6.0 sen or -3.3%). The share price is now 31.0 sen off from a week back, breaking several crucial support levels in the process (RM1.90 and RM1.77). While occasional bouts of bargain hunting were present in yesterday’s trade, the overall technical picture is weak (bearish crossover of MACD and falling of RSI) and bias is now to the downside. Our stop-loss level has also been triggered as a result. Traders who have yet to sell may consider selling on any strength towards the RM1.80 (R1) - RM1.90 (R2) resistance levels. Immediate support can be seen at RM1.69 (S1), with another further down at RM1.54 (S2).

Source: Kenanga Research - 23 Aug 2016