Gamuda (GAM)
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)
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 (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.
SMALL CAPS PICKS
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
