KAREX (Not Rated). Earlier this year, KAREX saw its share price plummetting 25.3% from a high of RM4.74 to as low as RM3.54 in February. Trading has been turbulent since, with the share price rebounding to RM4.18 only to meet with a fresh wave of profit taking. Although the overall trend is fairly neutral, KAREX’s short-term technical picture has improved significantly following yesterday break above the RM4.00 mark (10th March top and psychological level). In fact, the share price has also managed a decisive close above the 50-day SMA on high volume while the RSI remains supportive of higher levels. Hence, we expect a clear path for the share price towards the February’s top of RM4.18 (R1) before encountering resistance at RM4.40 (R2), while downside support levels are RM3.90 (S1) and RM3.70 (S2).

TOPGLOV (Not Rated). We are revisiting TOPGLOV again after its share price is showing signs of a rebound play in tandem with the recovery of the greenback against the Ringgit post its recent consolidation phase, surging 16.0 sen (+3.17%) to close at RM5.20 yesterday. The share price has been slashed by 25.7% to RM5.20 since hitting a high of RM7.00 back in January. Yesterday’s surge was backed by a strong hook-up seen in the Stochastic from its oversold position, lending a hand to the rebound play. If the dollar continues to strengthen, we reckon that TOPGLOV could benefit further by rallying towards RM5.51 (R1) and possibly RM5.89 (R2) next. Downside supports could be seen at RM4.87 (S1) followed by RM4.60 (S2). 

Source: Kenanga Research - 6 Apr 2016