OLDTOWN (Trading Buy, TP: RM1.75). Recall that we previously highlighted OLDTOWN (16-Dec), after the share price poised to continue on its uptrend away from its congestion zone. Yesterday, the share price once again garnered investors interest with the share price surging 11 sen (+7.59%) to stage a breakout from its channel resistance level, settling at RM1.55. Technical wise, MACD has staged a crossover to undergo its bullish convergence in tandem with an uptick in RSI, to imply the pilling up of buying momentum. With the bullish-bias technical picture, we reckon that the share price would retest its 6-months high level of RM1.75 (R2) in the mid-term.

APFT (Not Rated). We are following up on APFT (highlighted on 3-Dec), where we previously anticipated a potential rebound play on the back of strong trading volume. Since then, the share price had traded against our view to consolidate towards RM0.21 level. Nevertheless, investors interest on the stock has recently started to pick up again as the share price staged a strong rebound rally to break out from its downtrend resistance level of RM0.245 (S2) with strong trading volume. The underlying near-term outlook turned positive as the share price is currently trading above its short-term SMA. We believe that the share price could ride on the bullish momentum to retest its previous high of RM0.345 in the near-term.

Source: Kenanga Research - 18 Dec 2015