Jul 20, 2017

Technical Picks From CIMB Top Picks For 2nd Half Of 2017

Gamuda (GAM)
gamuda chart
The LT wedge pattern for Gamuda (GAM) is still intact and the price movements in the 1H2017 were in line with what we expected. After breaking out above RM4.94, the stock is now on its way higher towards its adjusted Fibonacci target of RM5.65-5.80. As long as prices continue to stay above the wedge support (currently at RM5.20), we expect the stock to reach its Fibonacci target band in 2H2017. Anything below RM4.53 would be very negative for GAM.
IHH Healthcare (IHH)
ihh healthcare chart
The LT uptrend for IHH Healthcare (IHH) is still intact as prices remained above its support trend line from its debut 2012. Furthermore, the fall from its all-time high of RM6.73 looks corrective, where a bullish flag may have taken form. As long as prices stay above RM5.15, the rising support trend line, continue to look higher for the stock in the coming months. Taking out RM6.27 would boost the idea that the next wave higher for IHH to above RM6.73 is underway. The next resistance is at RM7.00 followed by RM7.19, the 1.382x Reverse Fibonacci target.
Bumi Armada (BAB)
bumi armada
Bumi Armada (BAB) broke out of its bullish wedge pattern in 1H2017 and has stayed above the wedge resistance (now support) since then. The stock may be trying to build a base above the wedge resistance and RM0.665. As long as RM0.665 holds up, we think that there is still room on the upside for BAB. Taking out RM0.825 would indicate that the stock is likely heading towards the psychological RM1.00 mark next. If momentum is still strong above RM1.00, prices may even reach RM1.15-1.30.
DRB-Hicom (DRB)
DRB-Hicom (DRB) is currently testing its historical resistance at RM1.90. The sequence of higher highs and higher lows since the RM0.92 swing low suggests that the stock’s uptrend is intact. DRB needs to stay above RM1.55 for its longer-term uptrend to continue in the coming months. Taking out RM1.90 would signal that prices could head higher to test the multi-year resistance trend line at RM2.20-2.25 next. Moving firmly beyond this trend line is very positive for the stock.

MYEG Services (MYEG)
The LT uptrend for My EG Services (MYEG) is still intact. Prices are now sitting just above its wedge support (RM2.03) and the odds continue to favour the bulls for now. A move to new highs could be next for MYEG, with the next target being the wedge resistance at RM2.55-2.60. Closing sharply below RM2.03 could potentially signal that a change in trend may be occurring.
Source: CIMB Research -  16/07/2017