By Tan Jia Hui I[email protected] Daily technical highlights – (EVERGRN, OFI) Daily Charting – EVERGRN (Trading Buy)
About the Stock: Key Support & Resistance Levels
Name : Evergreen FibreboardBhd Bursa
Code : EVERGRN CAT Code : 5101 Market
Cap : RM566.1m
52 Week High/Low : 0.74/0.36 3-m Avg. Daily Vol. : 6,211,802 Free Float (%) : 47%
Beta vs. KLCI : 1.4
Last Price : RM0.67
Resistance : RM0.74 (R1) RM0.82 (R2) Stop Loss : RM0.61
Evergreen Fibreboard Bhd (Trading Buy)
• After treading sideways from Jul 2021 until late Nov 2021, EVERGRN’s share price broke away to form an ascending price channel. It recently overcame a resistance level at RM0.58 (which was previously tested in mid-Jan and mid-Feb 2022) to extend the upward trajectory.
• With the Parabolic SAR showing an uptrend and the DMI Plus trending above the DMI Minus, the share price is expected to shift higher ahead.
• Based on the Fibonacci extension lines, the stock could rise to challenge our resistance levels of RM0.74 (R1: 10% upside potential) and RM0.82 (R2: 22% upside potential).
• We have pegged our stop loss price at RM0.61, representing a 9% downside risk.
Daily Charting – OFI (Trading Buy)
About the Stock: Key Support & Resistance Levels
Name
: Oriental Food Industries Holdings Bhd
Mieco Chipboard Bhd
Bursa Code : OFI MIECO
CAT Code : 7107 5001
Market Cap : RM247.2m RM670.0m
52 Week High/Low : 1.24/0.80 3-m Avg. Daily Vol. : 538,486 Free Float (%) : 31%
Beta vs. KLCI : 0.6
Last Price : RM1.03
Resistance : RM1.14 (R1) RM1.23 (R2) Stop Loss : RM0.94
Oriental Food Industries Holdings Bhd (Trading Buy)
• Chart-wise, after falling from a double-top reversal pattern to a low of RM0.88 in end-Dec 2021, OFI shares have since rebounded to form higher highs recently.
• With the Parabolic SAR trending upwards and coupled with a bullish MACD signal, the stock is expected to climb further towards our resistance targets of RM1.14 (R1: 11% upside potential) and RM1.23 (R2: 19% upside potential).
• On the downside, our stop loss price has been set at RM0.94 (or a downside risk of 9%).
• Business-wise, OFI is involved in the manufacturing and sale of snack food, confectionery and biscuit products.
• Following a 47% QoQ increase in revenue to RM88.3m in 3QFY22 (vs. 2QFY22’s RM59.9m), thanks to higher sales volume in the local and export markets, the group’s net profit jumped by 72% QoQ from RM4.4m to RM7.6m in 3QFY22. This brought 9MFY22’s bottomline to RM13m (+15% YoY).
STOCK CALL MONITOR*
Stock Name Issue Date
(ID) Rating Price @ ID Target Price (TP)
Stop Loss Price (SL)
Upside Potential @
ID
Downside Risk @ ID
Risk to Reward Ratio
Highest Price since ID
Lowest Price
since ID Last Price
Status^ Date Status Fulfilled
RM RM RM % % RM RM RM
SPORTS TOTO BHD 8/3/2022 Trading Buy 1.79 1.95 1.68 9% -6% 1.45x 1.96 1.78 1.95 TP Hit 6/4/2022
MAGNUM BHD 8/3/2022 Trading Buy 1.79 1.94 1.67 9% -6% 1.35x 1.84 1.71 1.84 Open
BERMAZ AUTO BHD 9/3/2022 Trading Buy 1.64 1.83 1.45 12% -12% 1.00x 1.83 1.61 1.77 TP Hit 24/3/2022
POWER ROOT BHD 9/3/2022 Trading Buy 1.24 1.36 1.16 10% -6% 1.56x 1.40 1.23 1.40 TP Hit 22/3/2022
FLEXIDYNAMIC HOLDINGS BERHAD 10/3/2022 Trading Buy 0.46 0.51 0.42 11% -10% 1.11x 0.53 0.46 0.48 TP Hit 4/4/2022
POH KONG HOLDINGS BHD 10/3/2022 Trading Buy 0.93 1.04 0.84 12% -9% 1.35x 0.88 0.78 0.86 SL Hit 10/3/2022
APB RESOURCES BHD 11/3/2022 Trading Buy 0.83 0.94 0.74 13% -11% 1.22x 0.86 0.77 0.81 Open
KPJ HEALTHCARE BERHAD 11/3/2022 Trading Buy 0.99 1.11 0.91 12% -8% 1.56x 1.04 0.97 0.98 Open
GLOBETRONICS TECHNOLOGY BHD 15/3/2022 Trading Buy 1.35 1.52 1.18 13% -13% 1.00x 1.58 1.30 1.54 TP Hit 31/3/2022
CTOS DIGITAL BHD 15/3/2022 Trading Buy 1.49 1.66 1.35 11% -9% 1.21x 1.63 1.45 1.59 Open
YTL POWER INTERNATIONAL BHD 16/3/2022 Trading Buy 0.59 0.64 0.54 9% -8% 1.22x 0.69 0.59 0.69 TP Hit 18/3/2022
SIME DARBY PROPERTY BHD 16/3/2022 Trading Buy 0.57 0.61 0.52 8% -8% 1.00x 0.61 0.54 0.60 TP Hit 6/4/2022
KSL HOLDINGS BHD 17/3/2022 Trading Buy 0.79 0.87 0.71 11% -10% 1.06x 0.88 0.77 0.88 TP Hit 1/4/2022
SUNWAY CONSTRUCTION GROUP BH 17/3/2022 Trading Buy 1.66 1.85 1.51 11% -9% 1.27x 1.72 1.63 1.71 Open
AEMULUS HOLDINGS BHD 18/3/2022 Trading Buy 0.78 0.92 0.66 19% -15% 1.26x 0.83 0.73 0.76 Open
ELSOFT RESEARCH BHD 18/3/2022 Trading Buy 0.93 1.03 0.84 11% -9% 1.24x 0.95 0.89 0.89 Open
GHL SYSTEMS BERHAD 22/3/2022 Trading Buy 1.38 1.55 1.23 12% -11% 1.13x 1.71 1.40 1.59 TP Hit 24/3/2022
RHONE MA HOLDINGS BHD 22/3/2022 Trading Buy 0.75 0.83 0.67 11% -10% 1.13x 0.78 0.72 0.76 Open
PESTECH INTERNATIONAL BHD 23/3/2022 Trading Buy 0.62 0.68 0.56 10% -10% 1.00x 0.66 0.58 0.64 Open
KELINGTON GROUP BHD 23/3/2022 Trading Buy 1.31 1.43 1.19 9% -9% 1.00x 1.44 1.29 1.41 TP Hit 5/4/2022
* Tracks our stock recommendations on a one-month rolling basis from issue date. Stock names will drop out from the list after one month from issue date regardless of their status.
STOCK CALL MONITOR* (con’t)
Stock Name Issue Date
(ID) Rating Price @ ID Target Price (TP)
Stop Loss Price (SL)
Upside Potential @
ID
Downside Risk @ ID
Risk to Reward Ratio
Highest Price since ID
Lowest Price
since ID Last Price
Status^ Date Status Fulfilled
RM RM RM % % RM RM RM
DOMINANT ENTERPRISE BERHAD 24/3/2022 Trading Buy 1.00 1.13 0.88 14% -12% 1.17x 1.28 0.97 1.08 TP Hit 6/4/2022
MIECO CHIPBOARD BERHAD 24/3/2022 Trading Buy 0.67 0.76 0.60 13% -10% 1.29x 0.70 0.59 0.65 SL Hit 29/3/2022
AEON CO (M) BHD 25/3/2022 Trading Buy 1.55 1.74 1.37 12% -12% 1.06x 1.65 1.46 1.65 Open
BOUSTEAD HOLDINGS BHD 25/3/2022 Trading Buy 0.64 0.70 0.57 10% -10% 1.00x 0.72 0.63 0.70 TP Hit 4/4/2022
DIALOG GROUP BHD 29/3/2022 Trading Buy 2.77 3.07 2.54 11% -8% 1.30x 2.77 2.67 2.68 Open
ONLY WORLD GROUP HOLDINGS BH 29/3/2022 Trading Buy 0.59 0.67 0.53 13% -10% 1.25x 0.61 0.57 0.61 Open
HEXTAR INDUSTRIES BHD 30/3/2022 Trading Buy 0.32 0.36 0.29 13% -9% 1.33x 0.36 0.31 0.35 TP Hit 4/4/2022
SCANWOLF CORP BHD 30/3/2022 Trading Buy 0.63 0.69 0.57 10% -9% 1.18x 0.90 0.63 0.89 TP Hit 1/4/2022
GREATECH TECHNOLOGY BHD 31/3/2022 Trading Buy 4.82 5.30 4.46 10% -7% 1.33x 4.85 4.46 4.48 SL Hit 6/4/2022
CAPITAL A BHD 31/3/2022 Trading Buy 0.75 0.82 0.69 9% -9% 1.00x 0.77 0.72 0.73 Open
BONIA CORP BHD 1/4/2022 Trading Buy 2.03 2.15 1.93 6% -5% 1.20x 2.20 1.99 2.09 TP Hit 1/4/2022
RESINTECH BHD 1/4/2022 Trading Buy 1.15 1.33 1.00 16% -13% 1.20x 1.22 1.10 1.13 Open
MALAYAN CEMENT BHD 5/4/2022 Trading Buy 2.45 2.82 2.11 15% -14% 1.09x 2.72 2.50 2.61 Open
HUME CEMENT INDUSTRIES BHD 5/4/2022 Trading Buy 1.12 1.28 0.98 14% -13% 1.14x 1.22 1.16 1.17 Open
OPENSYS M BHD 6/4/2022 Trading Buy 0.37 0.42 0.32 14% -14% 1.00x 0.39 0.37 0.39 Open
XIN HWA HOLDINGS BHD 6/4/2022 Trading Buy 0.28 0.32 0.24 14% -14% 1.00x 0.30 0.28 0.29 Open
* Tracks our stock recommendations on a one-month rolling basis from issue date. Stock names will drop out from the list after one month from issue date regardless of their status.
^ Status will be categorised as either:(i) "TP hit" when stock reaches target price first OR (ii) "SL hit" when stock touches stop loss first OR (iii) "Open" when neither TP nor SL has been hit.
Technical Terms:
Reversal Candlesticks Patterns Description Doji
Dragonfly Doji (Bullish) Gravestone Doji (Bearish)
Dojis form when a security's open and close are virtually equal. The length of the upper and lower shadows can vary, and the resulting candlestick looks like, either, a cross, inverted cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and sellers.
Engulfing Pattern
A reversal pattern that can be bearish or bullish, depending upon whether it appears at the end of an uptrend (bearish engulfing pattern) or a downtrend (bullish engulfing pattern). The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's price action.
Hammer (Bullish) Shooting Star (Bearish)
Hammer candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. This appears in a downtrend.
In contrast, the Shooting Star pattern appears in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.
Inverted Hammer (Bullish) Hanging Man (Bearish)
The Inverted Hammer is a single-day bullish reversal pattern. In a downtrend, the open is lower, then it trades higher, but closes near its open price, therefore looking like an inverted lollipop.
Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low.
Harami Harami Cross
The Harami is a two-day pattern that can be bullish or bearish. It has a small body day completely contained within the range of the previous body, and is the opposite colour.
The Harami Cross is similar to the Harami. The difference is that the last day is a Doji.
Marubozu
A Marubozu candlestick has no shadow extending from the body at either the open, the close or at both.
Morning Doji Star (Bullish) Evening Doji Star (Bearish)
A Morning Doji Star (Evening Doji Star) is a three-day candlestick bullish (bearish) reversal pattern - a long-bodied black (white) candle extending the current downtrend, a short middle candle that gapped down (up) on the open, and a long-bodied white candle that gapped up (down) on the open and closed above (below) the midpoint of the body of the first day.
Spinning Top
Spinning Tops are candlestick lines that have small bodies with upper and lower shadows that exceed the length of the body. They are similar to the Doji candlesticks, and signal indecision.
Source: Various
Common Chart Patterns
Reversal Patterns
Inverted Head & Shoulders (Bullish)
Head & Shoulders (Bearish) Wedge Reversal (Bullish/
Bearish)
Double Top (Bearish) Double Bottom (Bullish)
Continuation Patterns
Symmetrical Triangle (Bullish/
Bearish)
Ascending Triangle (Bullish) Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish)
Source: Various
