DUFU (Not Rated). Yesterday, DUFU had garnered trader’s interest as it surged 4.0 sen (+7.77%) to settle at RM0.555. The share price has staged a rebound lay after consolidating for the past two weeks from its recent high level of RM0.675. Trading volume is seen to be increasing since then, as the share price staged a gap up to close above its 20-day SMA level yesterday. Investors are seen to be accumulating on weakness as the stock is currently on an oversold condition, showcased by the resurfacing of Stochastic indicator from the aforesaid level. Shall follow-through buying interest occurs, we reckon that the share price could ride on the bullish momentum towards its previous high level of RM0.67 (R2) in the near-term. Immediate support level is seen at RM0.53 (S1) and RM0.48 (S2).

KEINHIN (Not Rated). Precision machining and components assembly company, KEINHIN, saw its share price rebounding from its consolidation phase by gaining 9.0 sen (+9.78%) to close at RM1.01. The share price has been trending up since Sep-15 to a high of RM1.29 (R2) before it undergoes a consolidation period to neutralise its overbought situation. Since then, it managed to find buying support near its psychological RM1.00 support level to rebound strongly, supported by an uptick in RSI and Stochastic that suggest investors are relooking at the stock due to its oversold condition. We view this could be a good opportunity for interested traders to enter the stock, with near-term targets set at its previous high level of RM1.29 (R2). Support zones should be noted at RM1.00 (S1) before RM0.82 (S2).

Source: Kenanga Research - 5 Feb 2016