KESM (Trading Buy, TP: RM6.50). KESM’s share price has been trading range-bound within RM5.00-RM5.48 for over the past 1.5 months. Yesterday, the share price staged a breakout (up 5.84%) from its resistance-turned-support level of RM5.48 (S1) on the back of strong trading volume to settle at RM5.80. The share price is currently trading in tandem with the rising 20-day SMA level. Besides, MACD has also broken out from its resistance trend line to perform a bullish convergence, further supporting the bullish-biased trajectory. Should follow-through buying interest persist, we reckon that the share price could gradually incline towards RM6.52 (R3) in the near-term. Our near-term target price objective is set 2.0 sen below the RM6.52 (R3) level at RM6.50, while stop-loss is set 3 sen below the RM5.48 (S1) level at RM5.45.

ESCERAM (Take Profit @ RM0.54). Yesterday, ESCERAM rallied to our target price of 54.0 sen before finishing the day up by 3.0 sen (+5.9%) at 53.5 sen. The share price had gained 10.0 sen (+22.7%) since our Trading Buy recommendation earlier last month (Report dated 2nd Dec @ 44 sen). Technically speaking, ESCERAM’s share price is in the midst of retesting the 54.0-55.0 sen (R1) highs created in October- November. At this confluence of resistance levels, we anticipate some profit taking activities to take place. Hence, traders may wish to lock in their gains for now and only revisit the stock once the 55.0 sen level is taken out. Immediate resistance levels are 55.0 sen (R1) and 62.0 sen (R2) while support levels are 50.0 sen (S1) and 46.0 sen (S2). Take Profit.

Source: Kenanga Research - 14 Jan 2016