GTRONIC (Trading Buy, TP: RM7.97; SL: RM5.97). GTRONIC continues its second consecutive days of rally, gaining 22.0 sen (3.4%) to finish at RM6.70. Trading volume surged with 2.1m shares changing hands, triple its average volume of 0.6m. From a charting perspective, GTRONIC kicked off a strong uptrend for the year, hitting a high of RM6.65 in September prior consolidating sideway over the past 3 months. Nevertheless, yesterday’s move marked a bullish breakout where we believe the share price is poised to resume its uptrend rally. Note that MACD has just crossed above its Signal line and Zero line while other oscillators showed uptick. From here, we set our technical target of 3.0 sen below its resistance at RM8.00 (R2), with an intermediate resistance at RM7.25 (R1). Conversely, a stop-loss should be placed 3.0 sen below support of RM6.00 (S1). A break-below would be deemed as highly negative, potentially capitulating towards next support at RM5.35 (S2).

MYEG (Not Rated). MYEG gained 9.0 sen (4.2%) yesterday to close at RM2.25 backed by decent trading volume with 20.2m shares exchanging hands – almost tripled its 20 day-average of 7.4m shares. Chart-wise MYEG has been consolidating sideways since early June before it broke out its recent high of RM2.19 in October. We reckon that with positive momentum indicators such as uptick in MACD above signal line and RSI inflected upwards, MYEG’s share price is staged for the next climb making higher high towards its all-time high of RM2.37 resistance level (R1). Once taken out, further gains would then be expected towards RM2.58 (R2). Any downside is likely to be limited at the RM2.08 (S1) support level or lower, stronger support is located at RM2.00 (S2) level.

Source: Kenanga Research - 22 Dec 2017