TEXCYCL (Trading Buy, TP: RM1.46; SL: RM1.15). TEXCYCL continued to build on its past 4-day bull momentum by surging 8.0 sen (6.72%) to close at RM1.27 yesterday. Looking at the technical chart, TEXCYCL has rebounded from its long-term trend channel support. After breaking out from its multi-month resistance-turned-support level of RM1.18 (S1), the stock could look to gear higher up towards RM1.37 (R1) and possibly RM1.49 (R2) in the near to mid-term. The positive outlook is further backed by the bullish convergence of MACD above its Zero-line. On a side note, we do not discount the possibility of the stock taking a mild breather given its overbought condition as evidenced by the RSI and Stochastic. Support levels are found at RM1.18 (S1) followed by RM1.09 (S2).

SCC (Not Rated). SCC recently proposed a 10-for-1 bonus issue followed by a 1-to-3 share split to increase its share liquidity. With that, the stock had garnered strong investors interest yesterday where it gapped up 19.0 sen (11.18%) to close at RM1.89. Indicator-wise, the MACD line has staged a bullish crossover above its signal and Zero line, while daily RSI and Stochastic had hooked up to indicate piling buying interest on the stock. Should there be follow-through buying interest, SCC could look to climb further up towards RM2.00 (R1) and possibly RM2.09 (R2). Nonetheless, we observe that there is some selling pressure emerging as depicted by the long upper shadow candlestick. Failure to build momentum on the technical gap up will see a retracement on the stock, where support levels are seen at RM1.81 (S1)/RM1.70 (S2).

Source: Kenanga Research - 21 Apr 2017