HEIM (Take Profit). In April, we recommended HEIM when the share price broke out of a multi-year resistance at RM15.18 (29-Apr). Since then, the share price has rallied to as high as RM18.74 (+23.5%), just shy of reaching our revised target price of RM18.78 (target price revised from RM16.74 on the 20th July). Overall, HEIM’s technical picture remains bullish with the share price and indicators (MACD and RSI) on a rising trend. Nevertheless, the technical reward/risk ratio is no longer compelling to justify continually holding HEIM in our model portfolio. For this reason alone, we are closing out the position with a RM3.12 (20.6%) gain based on yesterday’s closing price of RM18.30. Immediate resistance levels to look out for are RM18.74 (R1) and RM19.95 (R2) for the medium to longer term, while downside support levels are RM17.80 (S1) and RM17.21 (S2) below.

MICROLN (Stopped Out). Last month, we recommended a Trading Buy call on MICROLN (report dated 27 July) after spotting that the share price could be staged for a technical rebound from its ‘broadening formation’ chart pattern's support trend line. While the stock had performed well during the earlier stage to a high level of RM1.61, it had consolidated since then. Yesterday, the stock also experienced selling pressure from the recent sell down of small-to-mid cap counters by investors, gapping down to breach our stop-loss level of RM1.32. As the technical picture turning very unappealing currently, we will keep a look-out for any signs of re-entry in the future when its technical picture turns positive.

Source: Kenanga Research - 30 Aug 2016