RCECAP (Not Rated)

• RCECAP closed 5.0 sen (3.33%) higher yesterday to end at RM1.55.
• The share appears to have breakout from its year-long downtrend, backed by high trading volume over the past few days.
• Technical indicators are in bullish mode, possibly indicating the beginning of an uptrend.
• Expect an immediate resistance test at RM1.60 (R1) where a break above it may see it rally towards RM1.71 (R2).
• Any short-term dip towards RM1.49 (S1) and RM1.39 (S2) will be good entry points for keen investors looking to buy low.

RGB (Not Rated)

• Yesterday, RGB gained 1.5 sen (5.88%) to close higher at RM0.270.
• Currently, the share is currently experiencing an uptrend after rebounding from its prior downtrend since October last year with price falling as low as RM0.215 in mid-April.
• Notably, RGB’s technical picture is now improving with the price decisively breaking the 100-day SMA, combined with the bullish “Marubozu” candlestick from yesterday’s trade.
• Momentum indicators are looking increasingly positive with the recent crossover signal-line in MACD and minor upticks in RSI and Stochastic.
• Expect follow through buying towards RM0.285 (R1) with a decisive breakout seeing higher resistance towards RM0.300 (R2).
• Conversely, should buying momentum tappers, expect an immediate support at RM0.260 (S1) and RM0.240 (S2).

Source: Kenanga Research - 7 Jun 2018