KNM (Stopped Out). To recap, we issued a Trading Buy call on KNM (report dated 27-Nov-15) after the share price staged a technical breakout from its ‘Flag’ chart pattern on the back of strong trading volume. However, the share price did not perform according to our expectation as it underwent a consolidation phase while triggering our stop-loss level of RM0.505 yesterday. Besides, crude oil price continued its downward spiral, which reinforces the lacklustre outlook for the O&G industry in the near-term. Technically speaking, the MACD is currently on its bearish convergence, suggesting a bearish outlook ahead. As such, we are stopping out on the stock for now while we will relook into the counter once its prospect turns more promising in the future.

YTL (Not Rated). Over the past seven months, YTL has been trading range bound between RM1.45-RM1.62. Recently, we have observed that the share price has been trending down south to retest its strong support level of RM1.45 (S1) on the back of declining trading volume. A ‘Doji’ candlestick was formed during yesterday’s trading session after four consecutive days of losses to imply investors’ indecision of its trajectory. On top of that, Stochastic indicator has flattened out in its oversold territory providing a glimpse of a possible reversal. Hence we advocate investors to look out for a potential rebound play near the RM1.45 (S1) before deciding to buy the stock. However, shall the RM1.45 (S1) level be violated decisively, further downside could be seen until RM1.33 (S2).

Source: Kenanga Research - 15 Dec 2015