TRC (Close Position @ RM0.655)

• TRC slipped 0.5sen (-0.76%) to finish at RM0.655.
• Since our ‘Trading Buy’ call-back in January, the bullish momentum did not sustain and the share experienced a downtrend thereafter.
• Momentum indicators are now in bearish mode with the 20-day SMA line trending below both 50-day and 100-day SMA.
• Trading volume has not been exceptionally high, probably indicating a lack of interest in the share.
• Thus, we decide to close position for now. Traders could consider selling on strength towards RM0.740 (R1). Conversely, should the share fall further to RM0.620 (S1) and RM0.545 (S2) support levels, we may re-look into this share.

GTRONIC (Close Position @ RM5.31)

• GTRONIC has now closed below the key 61.8% Fibonacci level of RM5.37 post recent selling pressure, reflecting a weak sentiment.
• Overall technical picture is bearish with SMAs in “Death Crossover” state whilst MACD hitting a lower trough in the negative territory with Signal-line above MACD.
• Believe the technical outlook could remain negative amid weak market breadth in recent days thus opt to close our position. Moving forward, the stock’s support levels can be identified at RM4.87 (S1); and RM4.37 (S2) further down which we may consider positioning for a re-entry.
• However, traders could consider selling on strength towards RM6.00 (R1).

Source: Kenanga Research - 16 Mar 2018