· HUPSENG (Trading Buy, TP: RM1.40). HUPSENG’s underlying trend remains up; as the share price is well supported by its 100-day SMA. The share price has been trading within the tight range of RM1.14-RM1.20 for the past two weeks. Yesterday, HUPSENG advanced 7.0 sen or 6.09% to close at RM1.22 which is above the strong resistance-turned-support of RM1.20 (S1) on the back of high trading volume. Indicatorwise, both RSI and Stochastic are inching upwards, coupled with MACD already crossed above the Signal Line; implying bullish buying momentum. All in, we believe the share price could re-test its mid-term resistance and recent high of RM1.40 (R2). As such, we are issuing a Trading Buy call on HUPSENG with a target price of RM1.40 (R2), with a protective stop-loss of RM1.14 (S2).

· SASBADI (Not Rated). Yesterday, its share price gained 9.0 sen or 4.07% to settle at RM2.30. Looking at the chart, the share price managed to hold above the strong support level of RM2.12 (S1). Currently, the share price has broken above the 20-day SMA, while both Stochastic and RSI indicators are reviving from oversold territory, suggesting that buying interests are picking up. The MACD histogram is also performing a positive crossover. However, trading volume is still lacking. Should a surge in daily trading volume occur over the next few days, we reckon that SASBADI could rally towards the immediate resistance level of RM2.35 (R1) and possibly RM2.60 (R2) in the mid-term. Meanwhile, the immediate strong support is at RM2.12 (S1). 

Source: Kenanga Research - 8 Sep 2015