OCR (Close Position @ RM0.605). Recall that in March (report dated 16-Mar at RM0.62), we recommended a Trading Buy on OCR after the share price broke out of its consolidation phase. Subsequent gains turned out to be short-lived and the share price entered into a mild downtrend over the following months. Now with the 20- and 50-day SMAs in a “Death Cross” and indicators in a bearish state, we think it best to square off our position until and unless the technical picture improves. Any near-term strength towards the downtrend resistance at RM0.65 (R1) can be viewed as an opportunity to sell, beyond which the next resistance level is RM0.67 (R2). Immediate support levels are RM0.595 (S1) and RM0.545 (S2) further down.
UMCCA (Not Rated). UMCCA surged 5.9% to close at RM6.45 yesterday. Trading volume was exceptionally high, with 296k shares exchanging hands, as compared to its daily average volume of 82k shares. Yesterday’s move was a positive change in trend, from where the share had previously been undergoing a downwards consolidation trend since April. Indicator-wise, yesterday’s move brought an uptick to the RSI, with the MACD also crossing above its signal line, nearing the zero-line. From here, we expect some immediate resistance at the RM6.50-6.51 (R1) levels, in which the share tested in yesterday’s intra-day trading. A decisive breakout from this level would see another resistance higher up at RM6.74 (R2). Likewise, we expect an immediate support to be placed at RM6.28 (S1). Breaking below this, a mild support can be found at RM6.13 (S2), with another stronger support at RM6.02 (S3) further below.
Source: Kenanga Research - 29 Jun 2017
