Weekly Technical Highlights (Week 22/04/19)

Profile stock list:

Might turn bearish: (Next week)
1. Annjoo

Might turn bullish: (Next week)
1. CIMB
2. Gadang
3. Gkent
4. Harta
5. Maybank
6. Penta
7. YOCB

In side way: (Next week)
1. EWINT
2. Homeritz
3. IGBreit
4. JAG
5. L&G
6. Pavreit
7. Pohuat
8. VS

1. Annjoo (Bearish)

After the ECRL project has been revived, as expected, traders take profit and causing a sell down to construction stocks especially annjoo which seems to benefit from mega project.
At the end of the week, this counter closed with doji for two trading days. The price movement for next week will determine the trend pattern. Should the price close with solid green candle on Monday, it will revert the uptrend and it must break above RM1.72.
Else, the downtrend will continue. The next support line is RM1.59.

2. CIMB (Bullish)

Latest financial report released from CIMB Thai (94.83% owned by CIMB) with 1QFY19 net profit grew +92.4%yoy to THB325m. This was also a turnaround in earnings from the losses in 4QFY18.
The contribution from CIMB Thai to the group's profit is less than 7%. Hence, it cannot attract short term traders to push the price up.
With such a good result achieved in Thailand, CIMB is in many research houses' radar, expecting the same performance will be achieved in Malaysia and Indonesia market.
In short term, price has moved above MA 9 trend. I reckon the stock price has reached the bottom. It will rally in anytime, if the price can breakout MA 20 in next week.

3. EWINT (Sideway)

The trend is still in sideway pattern. There is a risk of price turning downward again as the price is closed to the descending triangle tip. No positive good sign as this moment. Support line: RM0.72.

4. Gadang (Bullish)

As predicted from last week highlight. The bullish trend is still strong. The price touched the support (RM 0.676) and rebound.
Next TP we are looking at RM 0.75, expecting the bullish momentum can breakout the RM 0.735 resistance point.
The latest group announcement in this week, Gadang Holdings Bhd has bagged a contract worth RM38.52 million to build a tiered bridge connecting the northern and southern sites of Tun Razak Exchange Development (TRX) from TRX City Sdn Bhd. The project is expected to commence on July 1 and is targeted for completion in the third quarter of 2020.

5. Gkent (Bullish)

Part of the share price dive was due to the profit taking actions by traders, after the revived of ECRL and the reviving of HSR project projects.
Technically, the price has rebound from the support point (RM 1.22) and closed at the mid point of previous week's candle at RM 1.26. Still maintain in the bullish trend with some minor price adjustment.

Currently, we are expecting the price to move in the fifth motive wave with some catalysts from government projects while the stock is still actively traded.
The stock might also expect to move slowly upward or side way due to reducing trade volume.
Currently, the price is trading at 1.43 times of price over book value. I would say the price has already factored in the company future prospect. Next TP we will be looking at RM 1.28 and the following price at the end of fifth wave which is around RM 1.40.

6. Harta (Bullish)

The price moves steadily upward and manages to break and stay above the major downtrend resistance line.
Sell down pressure has reduced, upper wick of candles reduces.
This counter is expected to turn into small bullish trend in short term, as the price closed above 9, 26, 30 MA lines and touched the next resistance line which is RM 4.87. It is very challenging for the price to breakout the resistance. Hence, the price will turn downward once it touches the resistance line.

7. Homeritz (Sideway)

Another doji closed in this week. However, the volume has reduced. Hence, it is expected to trade in side way in the following week.

8. IGBReit (Sideway)

After hitting the 52 weeks high, the price has been retreated and stay in side way. The price is still moving in uptrend pattern resistance and support lines at RM 1.90 and RM 1.80 respectively. The short term bullish is still effective as the price stays above 9 MA line.

9. JAG (Sideway)

Daily trade volumes are less. Price moves within the range of RM 0.055 to RM 0.045. Side way pattern.

10. L&G (Sideway)

L&G has the same trend pattern as JAG. As mentioned earlier, the volume reduced. Hence, no sign of momentum. Stock traded in the range of RM 0.16 to RM 0.15. Both companies require catalysts to stimulate the uptrend.

11. Maybank (Bullish)

The recent tumble in stock price was due to Hyflux debt issue.
Related news as below:
Based on a recent news report, the bailout deal between Singapore’s Hyflux Ltd. and an Indonesian consortium led by the Salim Group has fallen through (announced on 4th and 5th Apr 2019) and meanwhile, Hyflux has until 30th of April before its debt moratorium expires.
Failing which, there could be some negative repercussions on Maybank’s 2019E earnings.
To recap, Maybank has a total exposure of RM1.95bil to Hyflux, which covers project financing for Tuaspring's Integrated Water and Power Plant and TuasOne Waste-to-Energy Plant.
On 19th April, Maybank has decided to terminate the collaboration agreement relating to the divestment of the Tuaspring integrated water and power plant (IWPP) with immediate effect, said water treatment firm Hyflux Ltd.
Under the agreement, the debt-laden Hyflux and Tuaspring Pte Ltd had agreed to the execution of a binding agreement with a successful bidder/investor for the full settlement and discharge of Maybank’s total liabilities by the "standstill deadline”.
Maybank has also stated its intention to appoint receivers and managers over the assets of Tuaspring save for the "desalination plant and shared infrastructure”.

In short term, morning star pattern has shown. The price should rally. However, the price closed below RM 9.10. Hence, it is still under a bearish trend, unless the price can manage to move and stay above it within next two trading days. Else, it might be just a small rebound. Potential sell down might happen again.   

12. Pavreit (Sideway)

After Pavreit's price hit the highest point (RM 1.85), it will retrace back to RM 1.80 and retest again the resistance point at RM 1.85. 

Resistance point: RM 1.85

Support point: RM 1.80

Currently, the stock is trading in a side way pattern, it would expect to be remaining in the same pattern. Unless the stock market is moving in bullish trend and traders would shift the fund out from REIT sector. 

REIT has been over priced recently causing the DY less than 5%. Hence, it is not worth to invest in REIT at this moment. 

13. Penta (Bullish)

Maintain bullish on Penta. It has made another record high in history. Price continues to increase as well as the volume. There is no technical indicator to estimate the next target price. 

Therefore, few info that I have to monitor to predict any sign of turning bearish:

1. The price should not fall below RM 4.09. 

2. Doji appears at the highest point.

3. Volume reduces. 

4. Selling pressure increases. 

14. Pohuat (Sideway)

Side way trend maintains for next week. Lack of trading volume to make any changes to the existing trend. 

15. VS (Sideway)

At the last trading day of the week, the stock has managed to breakout the resistance line at RM 1.09 and closed at RM 1.10. 

If the price can stay above resistance line for next three trading days, the uptrend will initiate. However, it seems to be hard to maintain with such a low trade volume. Thus, I anticipate that the price might go side way even though it stay above resistance line.    

16. YOCB (Bullish)

Although there is no significantly different in pricing as I gave a bullish call for YOCB, it can clearly see that MACD lines are moving closer to each others and CCI has moved into positive range. I will still give a bullish call for it.
Volume has increased compared to last week. Expecting the price to rise to previous high at RM 1.24, but due to the low liquidity of stock in the market, it takes time to reflect the true value of this stock.
Currently, the stock is trading at 0.84 times of the price to book value.