HOMERIZ (Not Rated). Furniture manufacturer cum exporter HOMERIZ saw its share price surge yesterday as the USD soared from RM4.23 to RM4.28 against the Ringgit. At the closing bell, HOMERIZ was up 8 sen at RM1.11 on high trading volume. Chart-wise, HOMERIZ is on a medium-term uptrend and looks to be poised resume its uptrend after briefly retesting the uptrend support at RM1.00 last week. Both the MACD and 14-day stochastic indicators have triggered a buy signal and are supportive of a move higher. From here, expect follow-through buying with immediate resistances at RM1.20/1.23 (R1) and RM1.33 (R2). Downside appears limited with support levels RM1.09 (S1) and RM1.00 (S2).

EITA (Not Rated). Barely 2 weeks back, we highlighted EITA’s bullish trend reversal after the share price broke out of its long-term downtrend (technical report dated 27Nov @ RM1.30). Since then, the share price had surged as much as 22.3% to a high of RM1.59 yesterday before ending the day at RM1.49 (-3 sen for the day). The overall technical has improved significantly with strong bullish momentum thus far. However, the share price now appears to be retesting the crucial July 2014 top at RM1.56 (R1). With profit taking activities likely to emerge nearer to this RM1.56 level, risk averse investors may consider selling on strength and reassess the chart only upon a decisive breakout. Resistance levels are RM1.56 (R1) and RM1.67 (R2), while downside support levels are RM1.45 (S1) and RM 1.30 (S2).

Source: Kenanga Research - 9 Dec 2015