NIHSIN (Not Rated). Cookware maker NIHSIN recently attracted investors interest after it reported that it will continue to be the manufacturer for all ODM and OEM customers, including the Buffalo brand of premium cookware, despite terminating its trademark licence agreement with US-based Standardworld Holding Ltd. On the back of strong trading volume, the share price rose 1.5 sen (4.84%) to close higher at RM0.325 yesterday. Technically speaking, the share price is retesting its immediate resistance level of RM0.33 (R1). Uptick in key momentum indicators such as RSI and Stochastic are also suggesting that buying interest is picking up. A compelling technical breakout from its immediate resistance level of RM0.33 (R1) could rally the share price to retest its previous high of RM0.37 (R2). Hence, traders is advised to look out for a technical breakout before entering the stock. Immediate support level is noted at RM0.30 (S1) and RM0.28 (S2).

QL (Not Rated). Yesterday, QL’s share price surged 28 sen (6.5%) to close higher at RM4.59 after having consolidated for the past 2 months. Nevertheless, we observe that the trading volume is relatively thin despite the significant surge. Key momentum indicators such as RSI and Stochastic have also entered into their respective overbought territory. We view that profit taking activity could arise as investors look to take advantage of the overdone surge yesterday. Thus we advise interested traders to wait for the share price to consolidate towards RM4.40/4.50 to neutralise its overbought situation before entering the stock.

Source: Kenanga Research - 15 Jan 2016