MYEG (Not Rated). MYEG surged 12.0 sen (5.8%) to stage a technical breakout away from its consolidation zone, settling at RM2.19 on Monday. The bullish performance came after the company reported a strong earnings report card and announced a 1-for-2 bonus issue. Key momentum indicators such as RSI and Stochastic are very encouraging at this point, hooking up strongly from their oversold position to indicate a surge in buying momentum. We reckon that the share price could look to trend further up towards RM2.25 (R1) before RM2.32 (3 bids below RM2.35) in the near-to-mid-term. On a side note, we do not discount the possibility of some profit taking given the appearance of a long upper shadow candlestick that reflects some selling pressure. Thus, any healthy retracement towards its immediate support levels of RM2.10 (S1) could offer a good entry point. Next level of support is at RM1.96 (S2).

GOODWAY (Not rated). GOODWAY rose 5.0 sen (8.7%) on Tuesday to a closing high of RM0.625. This signals a continuation of its uptrend after a brief pullback towards the trend-line and 20-day SMA combined supports last week. Trading volume has also proven to be consistent with a healthy uptrend these past two months, and Tuesday’s uptick is constructive for a higher move. From here, we expect the share price to retest the RM0.675 (R1) resistance fairly soon. Should a breakout occur, investors may then set their sights on RM0.79 (R2) further up. As for the downside, strong support is expected at RM0.56 (S1) although a break below would be highly negative.

Source: Kenanga Research - 1 Sep 2016