· RHBCAP (TB, TP: RM RM8.30). RHBCAP has surged 22 sen or 2.9% to stage a technical breakout from its 3-months downtrend channel to settle above its 20-day and 50-day SMA level at RM7.59. Technical indicators are laying a hand on the bullish-bias, in view of the bullish divergence of the MACD, strong up trending of the Stochastic and RSI to imply pilling up of buying momentum. With the positive sentiment coming from the recent Malaysia’s sovereign rating upgrade arousing investors’ interest, we reckon that the share price could continue to rally towards our TP of RM8.30 in the mid-term (whereby a swift breakthrough above its 200-day SMA is vital for the share price to continue its uptrend).

· HARTA (NR) is consolidating after hitting the recent high at RM9.00. The key indicators readings are sending mixed signals. Both Stochastics and RSI are moving upwards. However, the MACD indicator is trending downwards. That said, HARTA is likely to consolidate further in the near term in view of the weakening of USD against MYR. Thus, investors who are interested in the stock could seek reversal signal at the immediate support level of RM8.20 (S1).

· VS (NR). Similar to HARTA, VS is undergoing a consolidation after it hit a recent high of RM4.75. The underlying trend of VS remains up; the share price is trading above all 3 SMAs (20, 50 and 100). However, Stochastics is in overbought territory, suggesting that further consolidation is likely to occur. As such, we reckon that the share price could consolidate further towards RM4.48 (S1) where investors could seek a reversal signal before entering the stock.

Source: Kenanga Research - 2 Jul 2015