TUNEPRO (Not Rated). With strong gains in AIRASIA and AAX’s share prices over the past few days, attention has begun to shift to lower profile counter TUNEPRO. Yesterday, TUNEPRO surged 11.0 sen (8.8%) to close at RM1.36 on trading volume, which was the highest since the company’s listing debut. Chart-wise, TUNEPRO has broken out of a long-term “Falling Wedge” pattern to signal a reversal of its downtrend. At the same time, the share price has also crossed above the 100-day SMA. Hence, we expect TUNEPRO to continue its move higher towards RM1.54 (R1) before setting its sight on the “Falling Wedge” measurement objective of RM1.83 (R2). Downside should be fairly limited, with support levels located at RM1.26 (S1) and RM1.10 (S2).

POHUAT (Close Position). To recap, we previously issued a buy call on POHUAT (17-Feb 2016), after postulating that the share price was looking to ride on its bullish momentum and continued with its rebound play. Nevertheless, the share price appears to have lost steam after reaching a high level of RM1.73 and going into a consolidation phase. Yesterday, it formed a bearish ‘Marubozu’ candlestick by gapping down 6.0 sen (3.64%) to close at RM1.59. Indicator-wise, both the RSI and Stochastic have hooked down strongly to imply that the selling pressure is piling up. With the technical outlook looking bearish and not trading to our previous expectation, we are closing our position on the stock. Meanwhile, we will re-look this counter once its technical picture turns compelling again.

Source: Kenanga Research - 4 Mar 2016