· SKPETRO (Not Rated). SKPETRO was up 6.0 sen (4.1%) yesterday, to RM1.53 after plunging for the past 3 weeks, in line with the overall market sell-down. Chart-wise, there appears to be a “Morning Star” pattern which is a bullish reversal sign, suggesting that buyers are taking control after the heavy selling. Yesterday’s uptick was on the back of above-average trading volume, while RSI and Stochastics are making a strong come back after hovering below oversold levels. We advise investors to keep an eye on SKPETRO for momentum pick up. Should that occur, we expect share price to push towards RM1.64 (R1), while the downside is capped at RM1.40 (S1).

· TENAGA (Not Rated). After a 3-year-long uptrend, TENAGA's share price appears to have lost its shine and the share price had fallen more than RM4.50 from its January’s high. Yesterday, however, the share price gained 48.0 sen to RM11.02, while white bullish candlesticks have appeared for two consecutive days. The Stochastic and RSI indicators have also hooked up to herald the start of an up-cycle while the MACD histogram is indicating a shift of momentum from bearish to bullish. That said, the share price could potentially retest the downtrend trend line resistance level of RM11.52 (R1). Only a break above the RM11.52 level would allow the overall trend to turn bullish. 

Source: Kenanga Research - 27 Aug 2015