OCK (Not Rated). OCK has been trading within its “Symmetrical Triangle” chart pattern for the past two years. Yesterday, the share price garnered investors interest to stage a technical breakout from its downtrend resistance trend line by surging 7.5 sen (10.3%) to close at RM0.80. On the back of a sudden surge in trading volume, the MACD histogram has conducted a bullish convergence on the back of uptick seen in the RSI and Stochastic. From here, we reckon that the pilling buying momentum could possibly rally the share price further towards RM0.83 (R1) and retest its all-time high level of RM0.935 (R2) next. Immediate support is seen at RM0.76 (S1) followed by RM0.695 (S2) next.

VS (Not Rated). VS have been trading in a downtrend channel since the start of the year and had found a strong footing near its RM1.15 (S1) level. The share price rose 3.0 sen (2.5%) to break out from its downtrend resistance to settle at RM1.23 on the back of strong trading volume. Key momentum indicators are lending a hand on the bullish-bias outlook, underpinned with the strong hook-up of RSI and Stochastic from their oversold region. From here, we view that the share price could have possibly ended its downtrend trajectory and look to trend further up towards RM1.35 (R1) and RM1.54 (R2) next. Support levels are noted at RM1.15 (S1) and RM1.00 (S2).

Source: Kenanga Research - 16 Mar 2016