IQGROUP (Stopped-out @ RM4.27). Earlier, we added IQGROUP into our trading portfolio after it significantly broke beyond an uptrend channel in early August. However, following the release of its 1Q18 quarterly results, the share saw heavy sell-down over the past two days, losing a total of RM1.01 (21%) to close at RM3.79 yesterday, and triggering our stop-loss at RM4.27 during last Wednesday’s session. The sell-down was accompanied with strong trading volumes, and was followed by bearish display from key-indicators. With the previous technical picture no longer intact, continued selling pressure could see the share trend further downwards towards support levels at RM3.60 (S1) and RM3.27 (S2). However, with that said, yesterday’s long lower candlestick shadow suggests that some pullback may be more likely. If so, we expect the share to meet with some overhead resistances at RM3.96 (R1) and RM4.10 (R2).

SCIENTX (Trading Buy, TP: RM9.64, SL: RM8.44). Among the top gainers for the day include SCIENTX, which saw its share price rallying 27.0 sen (3.1%) to finish at RM8.95. Notably, trading volume surged to the highest level since March. More importantly, the share price has broken out from its narrow trading range, potentially signalling the start of an uptrend. Key indicators such as the MACD and RSI are supportive of a move higher. The next resistance level to watch is RM8.99/RM9.00 (R1) and should these levels be taken out next, SCIENTX would then have a fairly clear path towards RM9.67 (R2) next and then possibly to RM10.00 (R3). Downside support levels include RM8.70 (S1) and RM8.47 (S2) below.

Source: Kenanga Research - 6 Sept 2017