TUNEPRO (Trading Buy, TP @ RM1.50). TUNEPRO has been trading along an uptrend channel over the past two months. Recently, it retreated from its uptrend channel resistance towards its channel support level, settling above its 200-day SMA level. Yesterday, the share price surged 7.0 sen (5.34%) to close at RM1.38, forming a long white ‘Marubozu’ candlestick to stage a rebound play from its channel support. We observe that the share price is repeating the same pattern seen during late-March, where the stock staged a rebound play on the back of strong uptick seen in its Stochastic indicator. Hence, we are recommending a ‘Trading Buy’ call on the stock with expectation that the share price will rebound towards RM1.40 (R1) and possibly its channel resistance line of RM1.50 (R2) in the near-term. Protective stop-loss is placed 3 bids below its immediate support level of RM1.30 (S1) at RM1.27, while the next level of support is seen at RM1.20 (S2).

PMETAL (Reiterate Trading Buy, TP @ RM3.42, SL @ RM2.87). PMETAL has been in a rising trend since January, with the share price rallying 72.5% from a low of RM1.82 (27-Jan) to a recent intraday high of RM3.14 (25-Apr). While there was some profit taking towards the trend-line/20day SMA at RM2.90 over the past two weeks, the share price is now poised to continue its uptrend following yesterday’s 13.0 sen (4.4%) surge to RM3.07. Overall, the technical picture is bullish and the 14-day Stochastic indicator has just signalled a shift in momentum from bearish to bullish. From here, we expect the share price to retest the April high of RM3.14 (R1) before climbing further towards the 123.6% Fibonacci Projection level at RM3.45 (R2) next. Downside appears limited, with strong supports at RM2.90 (S1), its underlying uptrend line / 20- day SMA) and RM2.82 (S2). 

Source: Kenanga Research - 5 May 2016