· SYSTECH (Not rated). SYSTECH has been trading sideways for over the past two months, as it failed to break above the resistance level of RM0.26 (R1) and is consolidating towards its Fibonacci support level of RM0.23 (S1). Key momentum indicators (RSI and Stochastic) are still trending south to suggest further consolidation. However, we observe that the latter is already in its oversold territory. The current sideways trading pattern is suitable for day traders and we advocate them to look for potential rebound play at the S1 level, with a short-term TP objective set at the R1 level.

· NAIM (Not Rated). Yesterday, NAIM surged 20 sen or 9.21% to break above its 5-month downtrend resistance-turned-support level, settling above all its key SMAs on the back of stronger-than-average trading volume. At the closing bell, the share price also surpassed its 61.8% Fibonacci level at RM2.36 (R1). Stochastic indicator has entered overbought zone yesterday, but healthy key pointers such as MACD and RSI are suggesting further room for advancement. Should the buying momentum persist, we believe it can retest at its 76.5% Fibonacci level of RM2.45 (R1).

Source: Kenanga Research - 28 Oct 2015