HEIM (Trading Buy, TP@RM16.74). Yesterday, HEIM’s share price rose 20.0 sen (1.34%) to stage a breakout from its multi-year resistance-turned-support level of RM14.98 (S1). Indicator-wise, the MACD histogram has performed a bullish convergence while breaking out from its downtrend line, suggesting that the share price could be ready to trend up higher after consolidating from its downtrend cycle over the past two years. This is despite the deeply overbought situation due to the recent strong buying interest on the stock. Hence, we reckon the share price could look to trend further up towards RM15.60 (R1) and possibly our target objective of RM16.74 (3 bids below the RM16.80 (R2) level) next in the near-to-mid term. Downside support is seen at RM14.80 (S1) and RM14.45 (S2) next, with a defensive stop loss at RM14.39 (3 bids below S2 level).

HIAPTEK (Not Rated). Yesterday, HIAPTEK rallied 6.0 sen (13.8%) to close at RM0.495. Trading volume rose to a fresh all-time high of 23.5m shares. Chart-wise, HIAPTEK has been on a short-term uptrend since February, with the share price rising 150% since its RM0.20 low earlier this year. As a result of yesterday’s move, the share price has confirmed a “Bullish Flag” formation. This indicates that the share price is poised to continue its prior uptrend after a brief breather. From here, we expect the share price to climb further towards the RM0.55 sen (R1) level before reaching the “Bullish Flag” measurement objective of RM0.615 (R2) next. Downside support levels are RM0.44 (S1) and RM0.405 (S2).

Source: Kenanga Research - 29 Apr 2016