KNM (Trading Buy @ RM0.580). KNM has staged a technical breakout from its ‘Flag’ chart pattern yesterday on the back of strong trading volume, as the share price rebounded strongly to close above all its key SMA levels. Meanwhile, its MACD has staged a bullish crossover while the RSI and Stochastic are ticking up to reflect the bullish outlook ahead. Should follow through buying interest persist, we reckon that this could be a good trading opportunity as the share price could look to retest its October high level of RM0.580 in the near-term.

EITA (Not Rated). EITA’s share price gapped up to finish at RM1.30 (up by 18.0 sen or +16.1%) after posting a 184.0% YoY jump in 4Q15 net profit while its management painted a cautiously optimistic outlook for the company. From a technical perspective, the share price has broken above its long-term resistance to signal a reversal in trend. With trading volume at a 1.5-year high and the MACD confirming a buy signal, we expect the share price to take out the RM1.30 resistance (R1) before moving higher towards RM1.45 (R2). Meanwhile, support can now be found at RM1.18 (S1) and RM1.10 (S2) further below.

Source: Kenanga Research - 27 Nov 2015