• Since the tumbling of XOX’s s hare price from RM0.705 on 20 Nov 2015 to RM0.17 on 14 Dec 2015, the stock has been trading within a narrow Bollinger band (see daily chart). However, the spike-up white candlestick in hourly chart widened the Bollinger band on high volume, suggesting that buying momentum is picking pace at an accelerating velocity. In addition, reading from hourly and daily oscillators (MACD, RSI and Slow Stochastics) showed strong bullish signals.
• With strong buying interests in the stock, we are of the view that share price is expected to stage a strong technical rebound. On the upside, we are targeting RM0.20, RM0.22 (daily Upper Bollinger band) and RM0.245 (high on 17 Dec 2015). Support is situated at RM0.17 (10-d SMA) with cut loss below RM0.16.
• Attractive risk to reward ratio with 36% upside against 11% downside. All in, we see an attractive risk to reward ratio for investor with a theoretical entry price of RM0.18 given that the downside to the cut loss zone of RM0.16 is 2 sen (-11%) while the upside to the LT price objective of RM0.245 is 6.5 sen (+36%).

Source: Hong Leong Investment Bank Research - 27 Jan 2016