PRESBHD (Trading Buy, TP: RM3.24). Yesterday, PRESBHD rose 14.0 sen (5.1%) to close at RM2.90 on the back of higher trading volume to stage a breakout from its multi-month downtrend resistance line. The MACD histogram has staged a bullish crossover with an uptick just below the zero-line, while both Stochastic and RSI have commenced strong up-ticks to support the rising buying momentum. We take the technical breakout as an opportunity to call for a ‘Trading Buy’ call on the stock, with expectation that the share price could rally towards its immediate resistance level of RM3.00 (R1) and possibly our target objective of RM3.24 (3 bids below its resistance level of RM3.27 (R2) on follow-through buying interest. Stop loss is placed 3 bids below the immediate support level of RM2.78 (S1) at RM2.75, with the next level of support seen at RM2.62 (S2).

SUNWAY (Not Rated). Yesterday, SUNWAY’s share price rose 6.0 sen (1.9%) to close at RM3.20. Trading volume was elevated for a second day after being relatively flat in the prior week. Chart-wise, SUNWAY has confirmed a “Bullish Flag” pattern with yesterday’s breakout. The chart formation indicates that SUNWAY is poised to resume its upwards move after a brief pause. The Stochastic indicator has also hooked upwards to reflect the increase in buying momentum. As such, we expect SUNWAY to climb further towards the “Flagpole” measurement objective of RM3.36. Traders may encounter some resistance at RM3.22 (R1) and RM3.32 (R2) next while downside support levels are RM3.12 (S1) and RM3.00 (S2). 

Source: Kenanga Research - 30 Mar 2016