TEKSENG (Not Rated). Yesterday, solar-cell maker TEKSENG saw its share price rallying 6.0 sen (5.1%) to close at RM1.24. Trading volume almost doubled the 30-day moving average, clocking in at 2.3m shares for the day. Earlier in February, wire news reported that the company is spending RM237m to triple its production capacity this year with orderbooks for 1H16 already filled up. On the daily chart, TEKSENG had been on a strong uptrend since September last year. The share price had risen from a low of RM0.35 to as high as RM1.30 (January) before hovering within a sideways trend. Nevertheless, the share price recently broke out of the RM1.20 resistance yesterday. With the bullish move, TEKSENG has signalled a continuation of its prior uptrend. From here, expect TEKSENG to retest its RM1.30 high (R1) where a decisive punch through would indicate further gains towards RM1.52 (R2) next. Downside support levels are RM1.10 (S1) and RM1.00 (S2).

GOB (Not Rated). Despite the weak performance on the broader market, GOB’s share price eked out a marginal 1.0 sen gain (2.0%) to RM0.51 on notably higher trading volume. The share price had earlier in the day risen to RM0.52 before succumbing to intraday profit taking. Nevertheless, GOB appears to have found solid support at its short-term uptrend line. In fact, GOB has also formed a “Rounding Bottom” chart pattern on a medium-term horizon to indicate that the share price has bottomed out and is now poised for further gains. The rising trend of the RSI is also supportive of a move higher. From here, we expect GOB to move to retest last week’s high of RM0.535 in the coming days. Should this level be taken out next, a further climb would then be expected towards RM0.555 (R2) and RM0.58 (R3). Downside support levels are RM0.50 (S1) and RM0.47 (S2). 

Source: Kenanga Research - 26 Apr 2016