MYEG (Not Rated). Yesterday, MYEG share price had surged 11 sen (5.29%) to close at RM2.19 on the back of heavy trading volume. The share price has staged a rebound play from its recent consolidation phase after reaching a high level of RM2.38 (R1) back in 11 January 2016. It is observed that the MACD has staged a bullish crossover while RSI has also hooked upwards to indicate a strong degree of buying strength supporting the price movement. We foresee that follow-through buying on the recent price weakness could lead to a retest of its previous high level of RM2.38 (R1) and possibly RM2.50 (R2) next. Meanwhile, immediate support level is noted at RM2.04 (S1) and RM1.87 (S2), respectively.

KAREX (Not Rated). KAREX rallied 19.0 sen (+4.6%) yesterday to RM4.28 as news of its proposed acquisition of a US condom maker took centre stage. The strong gains came despite the strengthening Ringgit, which saw share prices of Rubber Glove and selective exporters easing off during the day. From a technical perspective, KAREX remains on a short-term uptrend with the share price showing signs of a rebound following a brief retreat to the trend-line earlier this week. With yesterday’s bullish move, the 14-day Stochastic indicator has also emerged from oversold level to trigger a buy signal. From here, we expect KAREX to inch higher with overhead resistance levels at RM4.35 (R1) and RM4.74 (R2). Support levels can be found at RM4.10 (S1) and RM3.80 (S2). 

Source: Kenanga Research - 28 Jan 2016