SCGM Bhd (7247)

• SCGM rose 3.1% or 4 sen to RM1.32 yesterday.

• SCGM has rallied 49% since our technical report dated 13 September 2019, breaking major resistance levels and key moving averages on the back of improving volume as it continues with its recovery after falling from a high of RM3.45 in 2017.

• Technically speaking, yesterday’s breakout indicates the uptrend channel is still intact given the positive signals and buying momentum, potentially heading towards the RM1.70 level.

• As such, resistance levels are seen at RM1.50 (R1) and RM1.70 (R2).

• On the flip side, downside support levels are expected at RM1.15 (S1) and RM1.10 (S2).

Source: Rakuten Research - 17 Oct 2019