SUCCESS (Take Profit). SUCCESS garnered strong investors interest to gap up 20.0 sen (10.15%), closing at RM2.17 yesterday after reporting a strong 1Q17 earnings report card. The underlying outlook had turned more positive given that the share price is currently trading above all its key moving averages, backed by a ‘golden cross’ formed by the 20-day and 50-day SMA. Besides, MACD histogram is also very persistent on its bullish convergence, trending strongly above its zero-line to lay a hand on the bullish bias. Nonetheless, with the RSI venturing into its deep overbought state for the first time since early-January this year, we do not discount the possibility of any consolidation to neutralise its overbought condition in the near-term before resuming the uptrend. As the share price has also surpassed our initial TP of RM2.14 (report dated 20-Sep-2016), we opt to lock in our profit for now and will look out for a better re-entry level moving forward.

RGB (Not Rated). RGB has been taking a breather after undergoing a strong rally between mid Sep-mid Nov. The stock has found some footing at the RM0.235 (S1) level over the past few days. Climbing 0.005 sen (2.13%) to close at RM0.24 yesterday, RGB has shown signs that the bulls could be in for another round of rally again. This is showcased by the reversing RSI and signal crossover by the Stochastic, triggering a short-term buy near its oversold area. From here, RGB will need to swiftly takeout its immediate resistance level of RM0.25 (R1), before it could look to set sight at its all-time high level of RM0.27 (R2). On the flip side, should it fail to take out the R1 level soon, RGB is likely to be caught in a prolonged sideways consolidation play within RM0.23-0.25. Key supports are found at RM0.23 (S1) followed by RM0.205 (S2).

Source: Kenanga Research - 30 Nov 2016