· AMBANK (Trading Buy, TP: RM5.15). AMBANK reversed from its earlier losses and advanced 17.0 sen to close at RM4.56 yesterday. Looking at the chart, a “Hammer” candlestick has been formed after a decline, coupled with a white candlestick taken shape yesterday, confirming a bullish revival. The Stochastic and RSI indicators have also turned positive to herald the start of an up-cycle while the MACD histogram is inching upwards, indicating the positive buying interests. Thus, the share price could potentially rally towards RM4.77 (R1) and RM5.15 (R2) next. All in, we are placing a “Trading Buy” call on AMBANK with a target price of RM5.15 (R2), while a protective stop-loss of RM4.17 (S1) should be placed.

· COASTAL (Trading Buy, TP: RM2.12). After a 2-month sell-down by investors on the stock, COASTAL managed to stage a rebound play to recapture its -2SD regression level and breaking out from its 1-month steep downtrend resistance level. The share price has rallied twice strongly over the past week to rebound from the RM1.61 support level. On the back of the above-average trading volume yesterday, key momentum indicators reaffirm the rebound play by hooking upwards away from the oversold zone. We reckon that this could be a good opportunity for investors to accumulate the stock, given that the share price has undergone a steep price correction recently. Hence, we are placing a ‘Trading Buy’ call on the stock in anticipation that follow-through buying interest would rally the share price towards RM2.12 in the near-term. 

Source: Kenanga Research - 28 Aug 2015