SCGM Bhd (7247)

• SCGM rose 12 sen or 12.2% to RM1.10 yesterday.

• Since our technical report dated 13th Sept 2019, share price has risen 24.3% breaking our previous resistance levels on the back of higher trading volume.

• Yesterday’s quarterly result saw it return to profitability after suffering two consecutive quarters of losses and the worst may be deemed over.

• The bullish long white candle saw bullish breakout on strong buying momentum coupled with positive technical indicator signals, share price is likely to challenge and test the RM1.30 level.

• From here, resistance levels are identified at RM1.16 (R1) and possibly further to RM1.30 (R2).

• On the contrary, support levels are found at RM0.96 (S1) and RM0.94 (S2).

Source: Rakuten Research - 25 Sept 2019