CIMB (Not-Rated) has been undergoing price consolidation for the last few months. Yesterday, the share price slid 7.0 sen or 1.45% to close at RM4.77, settling below all its key SMAs. Chart-wise, the technical indicators are still painting a gloomy picture with Stochastic performing a negative crossover a day earlier while the RSI is still heading south. However, an initial reversal signal is spotted as a “hammer”-like candlestick was formed yesterday after it went to an intra-day low of RM4.69.We suggest investors to look for a white candlestick today coupled with increasing trading volume to confirm a potential rebound and accumulate the stock.

EVERGREEN (Not Rated). EVERGREEN was up by 6.0 sen (3.3%) yesterday to RM1.86. Chart-wise, EVERGREEN appears to be consolidating sideways, close to the 100-day SMA and its -2SD regression, forming a ‘Wedge’ chart pattern. Key indicators are slowly picking up as well with RSI and Stochastic gaining momentum while the MACD is closing in on the Signal Line. As such, we recommend that investors accumulate EVERGREEN should it hit the support level at RM1.75, and look for a breakout from the ‘Wedge’ pattern. Should the share price to stage a breakout, we expect it to push towards RM2.07 which is the recent high. Meanwhile, immediate support is set at RM1.75. 

Source: Kenanga Research - 3 Sep 2015