SAPRES (Trading Buy, TP: RM1.73). SAPRES has been consolidating over the past two months, after it surged towards a high of RM1.73 back in November 2015 when it attracted interest due to talks of the company selling its education arm APIIT to Ekuinas. Yesterday, the share price once again attracted interest as it surged 14.0 sen (10.37%) to stage a gap up above all its key SMA levels. MACD had already undergone a bullish crossover, while RSI and Stochastic have trended up north strongly to imply the increased buying interest among investors. While we do not foresee any significant resistance roadblock ahead, we reckon that follow through buying interest could potentially rally the share price to retest its previous high level of RM1.73 (R2) in the near-term. Hence, we are recommending interested investors to enter the stock now to ride on the rebound play, with protective stop-loss level marked 3 bids below the short-term SMA level of RM1.32 at RM1.29.

PCHEM (Not Rated). Yesterday, PCHEM rose 18.0 sen (+2.6%) to RM7.19 to register among the top gainers of the day. The share price has been on a medium uptrend channel since late-August, buoyed by its long-term growth story with the RAPID project. Following the recent week’s broader market broad market decline, PCHEM had retreated back to the uptrend support. Nevertheless share price appears to have bottomed out having confirmed the “Doji” reversal candlestick yesterday. Hence, we expect PCHEM to stage a rebound towards the previous high of RM7.62 (R1) and further up towards the uptrend resistance at RM7.80 (R2). Immediate support is located at RM6.83 (S1) and 6.60 (S2). 

Source: Kenanga Research - 20 Jan 2016