GHLSYS (Take Profit @ RM0.94). To recap, we had previously recommended a ‘Trading Buy’ call on GHLSYS (report dated 30th Dec 2016) after the share price had broken out of a ‘Double Bottom’ chart pattern on high trading volume. Since then, the share price had progressively made its way up towards our target price objective of RM0.94 yesterday. The MACD line is noticeably regressing its way towards the zero-line, while Stochastic had tapered further south to hint that upside is rather limited from here. As the share price had met our target price and is expected to consolidate in the immediate term, we opt to lock in our gains for now and re-seek another attractive entry point.

ALAM (Take Profit, TP @ RM0.36). Earlier last week, we recommended ALAM (Report dated 7-Feb @ RM0.29) after the share price broke out of a “Bullish Pennant” formation. Since then, the share price has performed to our expectations, with a run-up to as high as RM0.37 in yesterday’s trade. As anticipated, profit taking has emerged at the RM0.375 resistance level/ measurement objective, as evidenced by yesterday’s candlestick with a “Long upper-shadow”. Along with the high traded volumes, this signals a potential short term turning point after a stellar run. As such, we favour locking-in prior gains for a quick 24.1% gain (target price met at RM0.36) for now. Immediate resistances from here are RM0.375 (R1) and RM0.405 (R2) while downside support levels are RM0.30 (S1) and RM0.265 (S2).

Source: Kenanga Research - 16 Feb 2017