PMETAL (Trading Buy, TP upgraded to RM5.34). After taking a breather from their strong 2-month rally since June to achieve our previous TP of RM4.19 recently, PMETAL staged yet another technical breakout from its month-long consolidation zone resistance level of RM4.20 to close at RM4.29 yesterday. Trading above all its up trending moving averages, the key SMAs are still lending strength to the overall underlying outlook. After neutralising the prolonged overbought condition, upticks by RSI and Stochastic are suggesting that the bulls have re-emerged. From here, we reckon that follow-through buying interest could yet again rally the stock further up towards RM5.34 (3 bids below the RM5.40 target objective measurement) in the mid to long term. Key resistances are seen at RM4.88 (R1) and, followed by, RM5.40 (R2). Key supports, on the other hand, are now pegged at RM4.20 (S1) and RM3.87 (S2). Out stop-loss level is revised to RM3.97 (3 bids below RM4.00) to preserve our previous gain.

AEONCR (Not rated). Yesterday, AEONCR surged 38.0 sen (2.7%) to close at RM14.28, recovering most of the losses from a downward consolidation over the past two weeks. Overall, AEONCR’s uptrend remains positive and yesterday’s bullish move signalled yet another rebound from the 20-day SMA. In the past, the 20-day SMA has served as a good support and resistance points. Coupled with high trading volume, we expect the share price to move to retest the recent high of RM14.70 (R1) before reaching the RM15.20 (R2) and RM15.58 (R3) Fibonacci projection levels. Immediate support can be seen at RM13.76/RM13.98 (S1) levels, with a lower support at RM13.23 (S2).

Source: Kenanga Research - 12 Aug 2016