· QL (Trading Buy, TP: RM4.55). Yesterday, QL advanced 11.0 sen or 2.66% to settle at RM4.24, supported by high daily trading volume. The underlying trend remained up as the share price is trading above all SMAs. Chart-wise, the share price has been trading in the range of RM3.89- RM4.15 for the past four months. A white “Marubozu” candlestick has formed and broken above the upper Bollinger Band yesterday after the consolidation, indicating a strong buying signal. Despite Stochastics indicator in overbought territory, MACD histogram continues its bullish divergence, while RSI is trending upwards, implying strong buying momentum that could possibly rally the stock further. Thus, we are issuing a “Trading Buy” call on QL with target price of RM4.55 (138.2% Fibonacci Retracement level coincides with +2SD regression line (R2)). Meanwhile, a protective stop-loss of RM4.00 (S1) should be placed.

· KAWAN (NR). Yesterday, KAWAN rose to break above its upper Bollinger Band to settle at its all-time high of RM2.69, with thin volume being traded. A “Marubozu” candlestick was formed with the share price closing above all SMA levels. However, key indicators showed that although MACD is trading slightly above the positive signal line and RSI remains trending upwards, Stochastic Indicator is in the overbought zone; hence, we expect a possible consolidation. We believe that the share price has yet to form a convincing breakout, and thus we reckon that it will consolidate towards the upper Bollinger Band’s level at RM2.48 in the near-term where we believe is a good entry level for investors.

Source: Kenanga Research - 31 Jul 2015