· VS (Trading Buy, TP: RM1.65). VS is testing its strong resistance level at RM1.52 after spiking 11.0 sen yesterday to RM1.52. This was on the back of a jump in trading volume. Chart-wise, yesterday’s chart displayed a long-white ‘Marubozu’-like candlestick. Key indicators are also ticking upwards, as the MACD is closing in on the Signal Line while RSI and Stochastic continue to head north despite the latter breaching overbought territory. Should follow-through buying interest continue, we believe the share price could look to retest its immediate resistance level of RM1.62 (R1). However, we believe strong support remains at RM1.39 (S1) level.

· PRESBHD (Not-rated) continued to garner more interest after its strong surge last Friday. The share price gapped up above its RM2.02 support-turned resistance level and attempted to break its long-term resistance of RM2.16 level. At the closing bell, it settled at RM2.08 with a daily gain of 7.0 sen or 3.48%. Indicator-wise, all the key indicators are heading north indicating that buying momentum still remains strong. However, do take note that the stochastic indicator has entered overbought level and RSI is also touching the overbought borderline. Hence, we do not discount the possibility of profit taking by investors in the next few days to take advantage of the recent price rally. 

Source: Kenanga Research - 20 Oct 2015