RESEARCH

On Our Technical Watch

19 March 2014

RSI SMAV
KLCI BURSA 18-Mar
(13D) (21D) Market Snapshot
KLCI 1,820.7 49.3 1,826.0
US Market: Dow Jones Industrial Average (DJIA)
FTSE EMAS 12,606.0 49.7 12,636.9
How was the market? US stocks climbed for a second straight session on
FTSE Smallcap 16,800.3 57.6 16,781.8
Tuesday, as housing data bolstered confidence in the economy and comments from
FTSE MESDAQ 6,620.4 62.1 6,589.0 Russian President Vladimir Putin soothed sentiment over the tensions in Ukraine.
KLCI Futures At the closing bell, the DJIA advanced 88.97 points, or 0.55%, to 16,336.19. Top 3
Mar-14 1,813.0 47.2 1,823.9 Index Gainers: Microsoft (+3.97%), Pfizer Inc. (+1.62%), United Health (+1.62%).
What is the chart saying? 20-day SMA resistance has been taken out following
Apr-14 1,808.0 48.6 1,817.0
yesterday’s bullish move. The short-term trend of the DJIA is now biased to the
CPO 2,737.0 46.6 2,788.7 upside, as it stays above all the short, mid and long term moving averages. Daily
RSI (14) indicator continued to hook upwards yesterday, confirming that the buying
RSI SMAV
INDICES 18-Mar momentum is strengthening. We believe that the DJIA is now well on its way to
(13D) (21D)
retest the 16,588 (R1) all-time high level. Meanwhile, a decisive break above
Dow Jones 16,336.2 55.7 16,256.2
16,588 could trigger a buy signal towards 17,050 (R2) next.
NASDAQ 4,333.3 58.9 4,301.4 Outlook Neutral-Bullish
FTSE-100 6,605.3 42.1 6,731.2 Key Resistance level 16,588 (R1) 17,050 (R2) 17,500 (R3)
Nikkei 225 14,411.3 41.1 14,819.7 Key Support level 16,100 (S1) 15,700 (S2) 15,356 (S3)
SHCOMP 2,025.2 44.2 2,051.9 Malaysia Market: FBMKLCI index
HSI 21,583.5 34.9 22,316.3 How was the market? The local equity market notched higher Tuesday, tracking
STI 3,093.8 50.3 3,102.5 the stellar performance from Wall Streets overnight. Gains were seen in selective
1,940.2 47.2 1,954.4 banking counters, ahead of the US FOMC meeting which concludes tonight. At the
KOSPI
close, the FBMKLCI gained another 5.54 points to settle at 1,820.70. Top 3 Index
TWSE 8,731.9 60.4 8,638.7 Gainers: GENM (+1.93pts), PBBANK (+1.22pts), CIMB (+0.88pts).
JCI 4,805.6 66.7 4,666.5 What is the chart saying? Chart-wise, the FBMKLCI formed a small bullish
SET 1,373.1 68.4 1,339.5 “Marubozu” candlestick which indicates that the bulls were dominant on yesterday’s
trade. Despite the relatively weak momentum shown in the MACD indicator, the
KLCI COMPONENT RSI SMAV Stochastic indicator continued to hook upwards yesterday. This was reflected by the
18-Mar
STOCKS (13D) (21D) local barometer staging a technical rebound over the last two sessions after falling
AMMB HOLDINGS 7.11 41.3 7.19 into the Stochastic oversold zone. The short-term outlook of the FBMKLCI remained
3.15 55.3 3.11 largely neutral, in view of the fragile momentum indicators. In order to reverse the
ASTRO
current downtrend, the key index will have to move above the 1,826-1,833 tough
AXIATA GROUP 6.49 42.3 6.52 resistance levels.
BAT 58.50 28.0 59.63 Outlook Neutral
CIMB GROUP 7.05 48.5 7.06 Key Resistance level 1,826 (R1) 1,833 (R2) 1,850 (R3)
DIGI.COM 5.13 59.9 5.09 Key Support level 1,800 (S1) 1,771 (S2) 1,750 (S3)
4.53 48.4 4.57
FELDA
9.71 34.9 10.03
Highlights / Stock Picks of the Day
GENTING
GENTING 4.31 54.7 4.27 Yee Lee Corp Bhd (YEELEE) - Not Rated
MALAYSIA Yesterday, YEELEE rose 11 sen to close at RM1.57 on strong trading volume. Our
HONG LEONG 14.12 47.3 14.16 consumer analyst believed that the market has deeply undervalued YEELEE, as
HLFG 15.48 49.6 15.55 the company has been trading at a surprisingly low historical PE of 7.8x. (Refer to
3.75 47.3 3.79 On Our Radar report on 18/3/2014). From the technical point of view, the short-
IHH
term trend of YEELEE looks bullish, following a decisive breakout from its all-time
IOI CORPORATION 4.74 60.5 4.68
high resistance level of RM1.46 yesterday. As suggested by the readings from
IOI PROPERTIES 2.58 35.6 2.60 daily MACD and RSI indicators, buying momentum of the stock is also gradually
KLK 23.70 47.4 23.92 switching from neutral to bullish. All these signals have led us to believe that
MAYBANK 9.59 44.4 9.66 YEELEE could potentially extend its rally towards RM1.68 (R1) and RM1.80 (R2)
fairly soon. On the flipside, a fall towards to previous resistance-turned-support
MAXIS 6.88 38.2 6.94
level of RM1.46 should see some renewed buying interest to emerge.
MISC 6.93 69.2 6.58
Outlook Bullish
PETCHEM 6.66 45.4 6.69
Key Resistance level RM1.68 (R1) RM1.80 (R2) RM2.00 (R3)
PETDAG 30.34 50.2 30.34 Key Support level RM1.46 (S1) RM1.34 (S2) RM1.24 (S3)
PETRONAS GAS 23.26 51.9 23.25 Strategy Not Rated Current Price RM1.57
PPB GROUP 16.40 57.0 16.19 Protasco Bhd (PRTASCO) - Not Rated
PUBLIC BANK 19.16 56.6 19.07
PRTASCO is on the investor’s radar after a research house pointed out that the
RHB CAPITAL 8.02 55.3 7.96 road maintenance and construction player’s orderbook which currently stood at
SAPURAKENCANA 4.24 33.2 4.36 RM709m, may skyrocket to RM1.0b this year. Earnings prospect of PRTASCO
SIME DARBY 9.21 55.3 9.16 looks promising, with the catalyst coming from both property, and oil and gas
segment. At yesterday’s closing price of RM1.74, the share price was up 10 sen for
TELEKOM 5.87 65.3 5.70
the day. Trading volume was notably higher, after it broke above RM1.60 (the
TENAGA 11.94 52.3 11.99 “Saucer Bottom” resistance level). Should follow-through momentum carry the
NASIONAL share price beyond RM1.78 in the near-term, the share price could potentially rally
UMW HOLDINGS 10.58 15.0 11.48 towards RM1.86 and RM2.00 next. Failing which, we may see a retreat towards the
YTL 1.53 42.1 1.56 RM1.60 level where we see strong support.
CORPORATION
Outlook Bullish
The Research Team Key Resistance level RM1.78 (R1) RM1.86 (R2) RM2.00 (R3)
research@kenanga.com.my Key Support level RM1.60 (S1) RM1.54 (S2) RM1.44 (S3)
Tel: +603-21666822 Strategy Not Rated Current Price RM1.74

PP7004/02/2013(031762) KENANGA RESEARCH

On Our Technical Watch 19 March 2014

Daily Charting – Dow Jones Industrial Average (DJIA)

Source: Kenanga Research

What is the chart saying? 20-day SMA resistance has been Technical Ratings
taken out following yesterday’s bullish move. The short-term Resistance 2 17,050 MACD Neutral
trend of the DJIA is now biased to the upside, as it stays above Resistance 1 16,588 Stochastic Neutral-Bullish
all the short, mid and long term moving averages. Daily RSI (14)
Current Level 16,336.19 RSI Bullish
indicator continued to hook upwards yesterday, confirming that
the buying momentum is strengthening. We believe that the DJIA Support 1 16,000
is now well on its way to retest the 16,588 (R1) all-time high level. Support 2 15,700 Outlook Neutral-Bullish
Meanwhile, a decisive break above 16,588 could trigger a buy
signal towards 17,050 (R2) next.

Daily Charting – FBM KLCI index

Source: Kenanga Research

What is the chart saying: Chart-wise, the FBMKLCI formed a Technical Ratings
small bullish “Marubozu” candlestick which indicates that the Resistance 2 MACD Neutral
1,833
bulls were dominant on yesterday’s trade. Despite the relatively
weak momentum shown in the MACD indicator, the Stochastic Resistance 1 1,826 Stochastic Neutral
indicator continued to hook upwards yesterday. This was Current Level 1,820.70 RSI (14) Neutral
reflected by the local barometer staging a technical rebound Support 1 1,800
over the last two sessions after falling into the Stochastic
Support 2 1,771 Outlook Neutral
oversold zone. The short-term outlook of the FBMKLCI
remained largely neutral, in view of the fragile momentum
indicators. In order to reverse the current downtrend, the key
index will have to move above the 1,826-1,833 tough resistance
levels.

Page 2 of 6 KENANGA RESEARCH

On Our Technical Watch 19 March 2014

Daily Charting – Yee Lee Corp Bhd

About the stock: Key Support & Resistance level

Name : Yee Lee Corp Bhd Resistance : RM1.68 (R1) RM1.80 (R2) RM2.00 (R3)
Bursa Code : YEELEE Support : RM1.46 (S1) RM1.34 (S2) RM1.24 (S3)
CAT Code : 5584 Outlook : Bullish
Market Cap : 280.3
52 Week High/Low : 1.61/0.83 What does indicator says:
3-m Avg. Daily Vol. : 615,020.3 MACD : Bullish
Free Float (%) : 40.4% Stochastic : Bullish
Beta vs. KLCI : 1.2 RSI : Bullish
Trend : Bullish
Yesterday, YEELEE rose 11 sen to close at RM1.57 on strong
trading volume. Our consumer analyst believed that the market What should you do:
has deeply undervalued YEELEE, as the company has been Strategy : Not Rated
trading at a surprisingly low historical PE of 7.8x. (Refer to On Current Share Price : RM1.57
Our Radar report on 18/3/2014). From the technical point of
view, the short-term trend of YEELEE looks bullish, following a Fundamental Call
decisive breakout from its all-time high resistance level of KNK : RM2.06
RM1.46 yesterday. As suggested by the readings from daily Consensus : N.A.
MACD and RSI indicators, buying momentum of the stock is also
gradually switching from neutral to bullish. All these signals have
led us to believe that YEELEE could potentially extend its rally
towards RM1.68 (R1) and RM1.80 (R2) fairly soon. On the
flipside, a fall towards to previous resistance-turned-support
level of RM1.46 should see some renewed buying interest to
emerge.

Source: Kenanga Research

Page 3 of 6 KENANGA RESEARCH

On Our Technical Watch 19 March 2014

Daily Charting – Protasco Bhd

About the stock: Key Support & Resistance level

Name : Protasco Bhd Resistance : RM1.78 (R1) RM1.86 (R2) RM2.00 (R3)
Bursa Code : PRTASCO Support : RM1.60 (S1) RM1.54 (S2) RM1.44 (S3)
CAT Code : 5070 Outlook : Bullish
Market Cap : 579.1
52 Week High/Low : 1.77/1.00 What does indicator says:
3-m Avg. Daily Vol. : 1,931,176.0 MACD : Bullish
Free Float (%) : 49.6% Stochastic : Bullish
Beta vs. KLCI : 0.8 RSI : Bullish
Trend : Bullish
PRTASCO is on the investor’s radar after a research house
pointed out that the road maintenance and construction player’s What should you do:
orderbook which currently stood at RM709m, may skyrocket to Strategy : Not Rated
RM1.0b this year. Earnings prospect of PRTASCO looks Current Share Price : RM1.74
promising, with the catalyst coming from both property, and oil
and gas segment. At yesterday’s closing price of RM1.74, the Fundamental Call
share price was up 10 sen for the day. Trading volume was KNK : N.A.
notably higher, after it broke above RM1.60 (the “Saucer Consensus : RM1.80
Bottom” resistance level). Should follow-through momentum
carry the share price beyond RM1.78 in the near-term, the share
price could potentially rally towards RM1.86 and RM2.00 next.
Failing which, we may see a retreat towards the RM1.60 level
where we see strong support.

Source: Kenanga Research

Page 4 of 6 KENANGA RESEARCH

 On Our Technical Watch 19 March 2014

Unrealised Positions (Mar 2014)

CATS Reward/ Dividend Gain/ Gain/
Issued Price Target Stop- Upside Downside Last
No Stock Name Risk Received Loss Rating Comment/ Action
Date (ID) @ ID Price Loss Potential Risk Price
Code Ratio since ID (incl. Div.) Loss
RM RM (%) (%) (x) RM RM RM (%)
Adjust TP/SL from
1 5159 YOONG ONN CORP BHD 5-Dec-13 0.91 1.26 1.09 38.46% 19.78% -1.9 1.22 0.02 0.33 36.26% BUY RM1.07/RM0.845
2 5072 HIAP TECK VENTURE BHD 17-Dec-13 0.75 0.94 0.69 26.17% -7.38% 3.5 0.74 0.01 0.00 -0.54% BUY -
3 9326 LB ALUMINIUM BHD 19-Dec-13 0.58 0.69 0.525 18.10% -9.48% 1.9 0.61 0.02 0.05 8.19% BUY -
4 0008 WILLOWGLEN MSC BHD 24-Dec-13 0.69 0.85 0.635 22.46% -7.97% 2.8 0.73 - 0.04 5.80% BUY -
5 5162 ECS ICT BHD 24-Jan-14 1.18 1.43 1.07 21.19% -9.32% 2.3 1.20 - 0.02 1.69% BUY -
Adjust TP/SL from
6 0113 MMS VENTURES BHD 7-Feb-14 0.205 0.335 0.22 63.41% 7.32% -8.7 0.25 - 0.05 21.95% BUY RM0.265/RM0.165
7 6491 KUMPULAN FIMA BHD 24-Feb-14 2.13 2.62 1.89 23.00% -11.27% 2.0 2.30 - 0.17 7.98% BUY -
8 9059 TSH RESOURCES BHD 6-Mar-14 3.26 3.57 3.09 9.51% -5.21% 1.8 3.20 - -0.06 -1.84% BUY -
HARBOUR-LINK GROUP
9 2062 BHD 12-Mar-14 1.68 2.47 1.53 47.02% -8.93% 5.3 1.85 - 0.17 10.12% BUY -
Simple Average 29.93% -3.61% 1.01 9.96%
*Tracker does not include Non-Rated positions

Realised Positions (Mar 2014)

CATS Intraday price Dividend Gain/ Gain/
Issued Buy Price change since Sell
No Stock Name since Sell Date Received Loss (incl. Rating Comment/ Action
Date Price Buy Date (%) Price
Code Buy Date since ID Div.) Loss
(H) (L) (H) (L) RM RM RM (%)
1 7106 SUPERMAX CORP BHD 6-Jan-14 2.93 3.08 2.74 5.12% -6.48% 10-Mar-13 2.79 - -0.14 -4.78% Stop loss RM2.79 stop-loss triggered

Simple Average 5.12% -6.48% -4.78%

Page 5 of 6 KENANGA RESEARCH

Basic Technical Terms:

Reversal Candlesticks Patterns Description

Doji 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
Dragonfly Doji (Bullish)
cross, or plus sign. Doji convey a sense of indecision or tug-of-war between buyers and
Gravestone Doji (Bearish) 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) 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.
Shooting Star (Bearish)
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) 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
Hanging Man (Bearish)
lollipop.
Hanging Man candlesticks form when a security moves significantly lower after the open, but
rallies to close well above the intraday low.
Harami 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.
Harami Cross
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) 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
Evening Doji Star (Bearish)
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

Inverted Head & Shoulders Head & Shoulders (Bearish) Wedge Reversal (Bullish/ Double Top (Bearish) Double Bottom (Bullish)
(Bullish) Bearish)
Reversal Patterns

Symmetrical Triangle Ascending Triangle Channels (Bullish/ Bearish) Flags (Bullish/ Bearish) Pennant (Bullish/ Bearish)
Continuation Patterns

(Bullish/ Bearish) (Bullish)

Source: Various

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not
make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to
the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This
document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees.
Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document
or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or
employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or
otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

Published and printed by:

KENANGA INVESTMENT BANK BERHAD (15678-H)

8th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Chan Ken Yew
Telephone: (603) 2166 6822 Facsimile: (603) 2166 6823 Website: www.kenanga.com.my Head of Research

Page 6 of 6 KENANGA RESEARCH