GENTING (Trading Buy, TP@RM10.94). Since reaching a high level of RM9.90 back in 23 March 2016, GENTING has been consolidating to neutralise its deep overbought situation developed by its strong 2-month rally in January. Yesterday, the share price attracted investors interest once again by surging 46.0 sen (5.0%) to close at RM9.60. The underlying outlook is looking positive underpinned by the strong reversal play seen in the RSI and Stochastic from their respective oversold position. The hook up in the aforesaid indicators is suggesting that buying momentum has resurfaced after the prolonged consolidation phase. Hence, if follow-through buying interest persist, we view that the share could look to trend higher towards its previous high level of RM9.90 (R1) and towards our target price objective of RM10.94 (3 bids below its next resistance level of RM11.00 (R2)) next. Meanwhile, stop-loss is placed 3 bids below its immediate support level of RM8.99 (S1) at RM8.93 with the next support level is seen at RM8.20 (S2).

PMETAL (Trading Buy, TP@RM3.48). PMETAL underwent a commendable bull run since late January to record a gain of c.63.8% after reaching a YTD high level of RM3.03, gaining 7.0 sen (2.4%) yesterday. Yesterday’s strong volume surge has led the share price to break out from its multi-year downtrend resistance trend line, lending a hand on a bullish-bias outlook ahead. Nonetheless, we observe that key momentum indicators such as RSI and Stochastic are relatively overbought, hinting of possible consolidation in the near-term. Hence, we advocate interested traders to look out for any retracement towards the downtrend resistance-turned-support line of RM3.00 as an entry point. As the overall underlying outlook is bullish, we expect the share to ride on the bullish momentum to retest its immediate resistance level of RM3.12 (R1) and possibly our target objective of RM3.48 next (3 bids below RM3.51 (R2) resistance) in the near-to-mid term. Downside support is noted at RM2.83 (S1) followed by RM2.70 (S2), whereby stop-loss is marked 3 bids below S1 level at RM2.80.

Source: Kenanga Research - 22 Apr 2016