· ECS (Trading Buy, TP: RM1.83) ECS has recently stage a breakout from its uptrend channel resistance level as well as its multi-month downtrend resistance level on the back of strong trading volume, after it announced an encouraging quarterly earnings report. The outlook looks promising, underpinned by the strong uptick in RSI and Stochastic, while the MACD continues on its bullish divergence. Should follow-through buying interest persist, we reckon that the share price could ride on its bullish technical breakout to retest its 6-month’s high level of RM1.83 in the mid-term.

· HOHUP (Not Rated). HOHUP attracted our attention after a spike in trading volume as it appears set to break out from its multi-month downtrend resistance line MACD has confirmed a ‘Golden Cross’, while RSI and Stochastic are hooking up strongly to imply strong buying interest after a prolonged consolidation phase. With these, we view that a rebound play is imminent and we also suggest investors to look out for a convincing technical breakout to occur before entering the stock. A technical breakout will lead the stock to rally towards RM1.16 (R2) next in the near-term.

Source: Kenanga Research - 6 Nov 2015