OCR (Trading Buy, TP@RM0.73 ; SL@RM0.57). OCR is undergoing a bullish reversal from a long consolidation period to form a ‘rounding bottom’ chart pattern. While trending above all its uptrending key moving averages, OCR’s had closed above the RM0.60 (S1) hurdle by climbing 2.0 sen (3.33%) to close at RM0.62 with high trading volume yesterday. With the MACD line setting a higher high, the near-to-mid term outlook is still bias towards the upside. From here, we see possibilities of the share price to gear higher up towards RM0.66 (R1) and possibly our target price objective of RM0.73 (3.0 sen below its all-time high level of RM0.76 (R2)) to complete its ‘rounding bottom’ chart pattern. Key supports are located at RM0.60 (S1) and RM0.55 (S2), where our protective stop-loss is placed 3.0 sen below the S1 level at RM0.57.

TAWIN (Trading Buy, TP@RM0.795; SL@RM0.545). TAWIN’s share price rallied 4.5 sen (7.8%) yesterday to finish at the day’s high of RM0.625 on increased trading volume of 1.0 shares. From a charting perspective, TAWIN had been on a modest uptrend for more than a year, having since tripled from its RM0.22 low in September 2015. More recently, the share price staged a four-day rally after the company announced its FY16 earnings, which quadrupled to RM2.0m from RM0.5m a year earlier (27-Feb) before consolidating downwards. Nevertheless, the share price is now poised to resume its prior run following yesterday’s breakout of a “Bullish Flag” pattern. From here, we expect the share price to retest its recent high of RM0.655 (R1), before moving to RM0.71 (R2) and ultimately, the “Flagpole” measurement objective of RM0.825 (R3). Downside support levels are RM0.595/0.56 (S1), and RM0.525 (S2) below.

Source: Kenanga Research - 16 Mar 2017