· PRESBHD (Not Rated). Last week, PRESBHD secured a letter of agreement to be the main implementer of the Immigration Department’s ‘Sistem Kawalan Imigresen Nasional’ (SKIN) contract. Since then, it has attracted interest, which capitalised on the bullish news to take profit on the recent run-up in its the share prices. Technically-speaking, PRESBHD is undergoing a consolidation mode after reaching its measurement objective of c.RM2.60 after staging a breakout from its ‘Triangle’ chart pattern a month ago. Both RSI and Stochastic indicator have also hooked downwards to indicate strong selling pressure, with the latter venturing into oversold condition. Nevertheless, we view that the sudden sell-down may be short-lived as the MACD is overall on a positive uptrend while its intra-day picture suggests that buying support has emerged towards the final leg of yesterday’s trading session. Thus, we advocate interested investors to re-look the stock at the RM2.45 (S1) level, while awaiting a buy signal before entering the stock.

· BINTAI (Not Rated). BINTAI was in the limelight after it received a RM64.9m mechanical, electrical and plumbing contract for the Rosewood Hotel in Phnom Penh, Cambodia. In tandem with strong volume traded, the share price has staged a strong rally of 4.5 sen (15%) to stage a breakout from its multi-month downtrend resistance level to close at RM0.345 yesterday. The MACD has also staged a crossover from its Signal line to indicate a bullish outlook ahead, while strong buying momentum is showcased by the uptick in RSI and Stochastic. On the flip side, we view that a short-term consolidation with upside-bias could be on the cards as the strong rally yesterday may be overdone. Near-term upside is seen capped at the RM0.39 (R2) level, with immediate resistance set at RM0.35 (R1).

Source: Kenanga Research - 24 Nov 2015