SCGM (Not Rated). SCGM has been consolidating over the past one month, after staging a strong rebound from its sell-down in August. Yesterday, the stock rose 8.0 sen (2.49%) to stage a breakout (above RM3.28 level) from its sideways consolidation pattern to close at RM3.29 on higher trading volume observed. Should the stock manage to hold above the RM3.30 level, the stock could look to gear higher towards RM3.38 (R1) and possibly the target objective of RM3.60 (R2) in the near-to-mid term. Failure to settle above the RM3.30 level soon could result in the stock regressing towards RM3.20 (S1) and possibly further south at RM3.00 (S2).Thus, interested investors could look to opt out of the stock if the S1 level is broken to prevent further losses from the share price retracement.

FGV (Close position @ RM2.34). Yesterday, FGV closed at RM2.34, down by 5.0 sen (-2.1%) for the day. The share price had a very good run since it began its uptrend in June. However, red flags are beginning to show up in FGV’s technical picture. For one, the share is now traded below its 20-day SMA. At the same time, the MACD is also sporting “Bearish Divergent” signals. This indicates a rapid loss of momentum – and potentially warning that the trend is about to turn. Hence, we are squaring off our earlier Trading Buy recommendation (22- Sept) with a minimal 7.0 sen loss. Immediate resistances are RM2.52 (R1) and RM2.82 (R2). Support levels are RM2.30 (S1), failing which RM2.00 (S2) is next.

Source: Kenanga Research - 14 Oct 2016