TONGHER (Close Position @ RM3.20)

• Following our “Trading Buy” call on TONGHER in November 2017, the share rallied to a high of RM4.36 in early December.
• However, the bullish momentum did not sustain as it quickly went down and remained in consolidation over the next 2 months.
• For the past two weeks, strong selling pressure is seen as indicated by the string of black-bodied candlesticks formed.
• Overall technical picture is looking bearish with the momentum indicators in negative mode.
• Thus, we opt to close position for now. Traders could, however, consider selling on strength towards RM3.50 (R1). Conversely, if it falls further to RM2.95 (S1) and RM2.60 (S2) support levels, we may consider positioning for a re-entry.

SCICOM (Not Rated)

• SCICOM gained 8.0 sen (4.3%) to close at RM1.96.
• Yesterday’s “White Closing Marubozu” candlestick indicates that bulls were able to dominate most part of the day.
• Overall technical picture is turning more positive with the SMAs in “Golden Crossover” state and momentum indicators are in uptrend modes, suggesting that SCICOM may be in the midst of bottoming out.
• Expect rebound play with price punching through RM2.00 (R1) over coming weeks. Once taken out, the next targeted resistance is RM2.10 (R2).
• Support levels can be found at RM1.90 (S1) and RM1.80 (S2).

Source: Kenanga Research - 9 Mar 2018