· PWROOT (Trading Buy, TP: RM3.10). PWROOT has been trading along its uptrend channel for the past 7 months. In tandem with strong trading volume, the share price has confirmed a technical rebound from its lower channel support to gap up above all its SMA levels yesterday. Indicator-wise, the MACD is looking to stage a technical crossover of its signal line to imply a positive outlook ahead. Besides, there is an uptick shown by the RSI to suggest buying momentum is piling up. Should follow through buying interest persist, we reckon that the share price could look to rebound towards its previous high level of RM2.92 (R1) and possibly its upper trend channel resistance level of RM3.10 (R2) next. Stoploss is placed 3 bids below its trend support level of RM2.52 (S1) at RM2.49.

· TOMYPAK (Trading Buy, TP: RM3.00). TOMYPAK’S share price has been consolidating after reaching its high level of RM3.00 (R2) a month ago. Yesterday, the share price surged 14.0 sen (+5.6%) to settle above its 20-day SMA level at RM2.64 on the back of strong trading volume. We view that the technical rebound ahead of the 20-day SMA from its recent consolidation phase to be bullish, as we observe that the 20-day SMA level turned out to be a strong resistance-turned-support level over the past few months. Indicator-wise, Stochastic has showcased a strong uptick from its oversold region to lend a hand on the bullish rebound play. Hence, we view that the share price could ride on the bullish momentum to rally towards RM2.73 (R1) and RM3.00 (R2) next in the near-term.

Source: Kenanga Research - 23 Dec 2015