May 17, 2016

ACOUSTECH - Technical Breakout

ACOUSTECH BHD  Stock Code: 7120

ACOUSTEC chart analysis

ACOUSTEC (Trading Buy, TP @ RM0.915). Yesterday, ACOUSTEC surged 4.0 sen (5.06%) on the back of strong trading volume to stage a technical breakout from its ‘Pennant’ chart pattern by closing higher at RM0.83. The underlying outlook is looking positive as the share price is currently trading above all its key SMAs (which are also trending upwards). Besides, MACD histogram has also undergone a strong bullish convergence further away from its zero-line to lend a hand on the bullish-bias outlook. From here, we reckon that the share price could be poised to trend further up towards RM0.88 (R1) and possibly towards out target price objective of RM0.915 (3 bids below RM0.93 (R2) level). Immediate support is seen at RM0.80 (S1) followed by RM0.76 (S2), while a conservative protective stop-loss level is recommended 3 bids below the S1 level at RM0.785.

source: Kenanga Research – 17/05/2016

The Group is engaged in the manufacture of OEM multimedia speaker systems for the PC industry and speaker units for incorporation into audio reproduction systems.The principal activities of FPEQ are manufacture of water cooler dispensers both for commercial and home use for export to Europe United States and South East Asia