KRETAM (Not Rated). KRETAM has been on an uptrend since August last year with its share price almost doubling from RM0.345 to as high as RM0.65 (February 2016). Following a two-month long downward consolidation phase between RM0.53-RM0.55, the share price broke the RM0.55 resistance level last Friday and continued its rally into yesterday’s trade. For the day, KRETAM was up by 2.0 sen (3.5%) to close at RM0.585. Trading volume was markedly higher, while the MACD has crossed above the signal line to reflect an increase in buying momentum. Hence, we expect the share price to continue its upwards climb towards RM0.60 (R1) and RM0.645 (R2) next. Downside supports are pegged to RM0.55 (S1) and RM0.53 (S2).

PRG (Not Rated). Since reaching a high level of RM1.18 back in February, PRG has undergone a prolonged consolidation phase by hovering within the RM1.03-RM1.15 zone. Yesterday, the share price garnered some buying interest again to gain 3.0 sen (2.73%). Both the RSI and Stochastic have showed strong up-ticks to reflect a sudden spike in buying momentum. If there is follow-through buying momentum, the share price could rebound towards RM1.18 (R1) and RM1.35 next, if it decisively breaks the R1 level. Downside supports are limited at RM1.03 (S1) and RM0.90 (S2). 

Source: Kenanga Research - 19 Apr 2016