HEVEA (Not Rated). Particle board manufacturer HEVEA’ has been in the limelight for more than a year as the stronger USD and favourable prospects continued to drive the share price to new heights. More recently, HEVEA has formed a bullish trend channel on the daily chart. The share price is now poised to resume its medium-term uptrend following yesterday’s departure from the trendline support. HEVEA was up by 4 sen at RM1.52 on increased trading volume, while a bullish MACD-Signal line crossover is also supportive of a move higher. From here, we expect a retest of the recent high of RM1.54 (R1) before a further move towards the channel resistance at RM1.65 (R2). Support in the meantime is present just below at the channel support of RM1.43 (S1) as well as recent low of RM1.40 (S2).

HOHUP (Not Rated). HOHUP has been on a medium term uptrend since September as investor bargain hunted following a disastrous August sell-down. Yesterday, HOHUP closed 5 sen higher at RM1.02 on high trading volume. The share price appears to be on track to resume its uptrend following a 2-week pullback towards the horizontal support level of 96 sen (S1). Momentum has also turned bullish with the 14-day Stochastic indicator emerging from oversold levels. From here, we anticipate HOHUP to challenge the 20-day SMA at RM1.05 (R1) before staging a retest of last month’s RM1.14 high (R2). Meanwhile, strong support is provided at the aforementioned 96 sen support level (S1) and 90 sen further down (S2).

Source: Kenanga Research - 4 Dec 2015