· SKPETRO (Not-rated). Yesterday, SKPETRO dropped 3.0 sen or 1.36% to close at RM2.17, settling above all its key SMAs. The stock has been consolidating since beginning of October after multiple attempts to break out from its immediate resistance of RM2.25 (R1). Indicator-wise, all the indicators remain unexciting with a sideways trading direction. However, we believe the stock could be a beneficiary to ride on potential crude oil rebound given that the share price is trading at its -1SD regression level with its uptrend intact. Hence, a good entry level would be at RM2.12 (S1) which coincides with its 100-day SMA level.

· KNM (Not Rated). Yesterday, KNM fell 1.5 sen or 2.83% to close at RM0.515, settling just above its 20-day SMA level. Based on our observation, the stock has been consolidating to form a “Flag” chart pattern. All technical indicators are still trading sideways with no reversal signals in sight. Having said that, do take note that the Stochastic indicator has ventured into oversold region suggesting that downside could be limited in the short-term. This is further underpinned by our regression analysis showing that the stock is trading close to its -2SD regression level. Therefore, should buying interest accumulates while oil prices rebound, we believe KNM may rebound strongly towards RM0.59 (R3), which also coincides with its +1SD regression level. 

Source: Kenanga Research - 12 Nov 2015