SCABLE (Trading Buy, TP: RM1.84). Limelight is shining again on SCABLE, with the Sarawak State Election approaching soon sometime in March. The share price garnered strong investors' interest during yesterday’s trading session, surging 13.0 sen (8.44%) to close at RM1.67 on high trading volume. From a technical perspective, the share price is staging a rebound play from its recent consolidation phase as it settled above all its key SMA levels. MACD has staged a bullish crossover, while RSI and Stochastic have hooked up strongly to trigger a buy signal. From here, we are placing a ‘Buy’ call on this stock while expecting the share price to ride on its bullish momentum to move higher towards its immediate resistance level of RM1.77 (R1) before looking to take profit 3 bids below its previous high level of RM1.87 (R2) at RM1.84. Downside support can be found at RM1.58 (S1) followed by RM1.46 (S2), while a strict stop loss is placed at RM1.55 (3 bids below RM1.58 level).

PETRONM (Trading Buy, TP: RM9.42). PETRONM has recently been consolidating since early January 2016 after undergoing a strong 2- month rally prior to the start of the year 2016. Yesterday, the share price regained investors interest again as it rose 19.0 sen (2.74%) to break out from its ‘Ascending Triangle’ chart pattern, closing at RM7.12 on the back of strong trading volume. The mid-term outlook for PETRONM remained bullish-bias, as the underlying is currently trading above all its key SMA levels. The uptick in RSI and Stochastic are also lending a hand to the bullish-bias by implying improved buying momentum. Besides, we also observe that there is a prior trading pattern where trading volume would rise and decline in tandem with the rally and consolidation phase of the share price. With the increase in trading volume post the consolidation phase, we reckon that the share price could resume its uptrend trajectory towards its immediate resistance of RM7.95 (R1) and possibly our target objective of RM9.42 next, which is 3 bids below the RM9.45 (R2) level. Immediate support is placed at RM7.00 (S1) with a conservative stop-loss of RM6.47, representing 3 bids below the RM6.50 (S2) level.

Source: Kenanga Research - 23 Feb 2016