Dow Jones: 27,778.07 pts (-66.84pts, -0.24%)
⬆ Resistance:  28700
⬇ Support:  27200

FBM KLCI: 1,577.85 pts (+17.11pts, +1.10%)
⬆ Resistance:  1620
⬇ Support:  1510

HSI Index: 25,367.38 pts (+20.04pts, +0.08%)
⬆ Resistance:  26200
⬇ Support:  24200

Crude Palm Oil: RM2,711 (+RM32, +1.19%)
⬆ Resistance:  2840
⬇ Support:  2560

Brent Oil: $45.46 (+$0.09, +0.20%)
⬆ Resistance:  46.60
⬇ Support:  43.60

Gold: $2,002.44 (+$17.14, +0.86%)
⬆ Resistance:  2060
⬇ Support:  1830

M+ Online Technical Focus - 19 Aug 20
SCGM Bhd: Timely expansion

Trading Catalyst
• One of the largest thermoform F&B packaging manufacturers in Malaysia with extrusion capacity of 67.6m kg per annum following the expansion the new Kulai plant in 4Q2019.
• Proxy to the rising demand for consumer trend of takeaway and ready-to-eat meals under new normal environment.
• Expansion into the production of face shields and face mask timely as the government enforced the mandatory use of face mask in public places.
• Technically, price has formed a bullish engulfing candle to re-test the daily EMA9 level which may propel price recovering towards the next resistances at RM3.55-RM3.95 with long term target at RM4.20.

Technical View

(i) SCGM (S: RM3.12, R: RM3.55-3.95, LT TP:RM4.20, CL:RM3.10)

S: Support, R: Resistance, LT TP: Long term target price, CL: Cut loss

Source: Bloomberg, M+ Online

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