TEKSENG (Not Rated). Yesterday, TEKSENG rose 6.0 sen (4.88%) to stage a technical breakout from its chart pattern to close at an all-time high level of RM1.29 on the back of strong trading volume. Key momentum indicators are supportive of the bullish picture, with MACD histogram at its bullish convergence together with uptick seen in RSI and Stochastic. If follow-through buying interest persist, we reckon that the share price could look to trend further up towards RM1.50 (R2) next. Nonetheless, we do not discount the possibility of some consolidation to neutralise its overbought situation in the near-term before resuming its uptrend. Immediate resistance is seen at RM1.30 (R1) followed by RM1.50 (R2), with supports located at RM1.25 (S1) and RM1.16 (S2).

IOIPG (Stopped Out). Recall that we had previously issued a trading buy call on IOIPG after the share price staged a technical breakout from its ‘Pennant’ chart pattern on strong trading volume. Despite several attempts to climb further, the momentum was rather short-lived as the share price consolidated further. Yesterday, IOIPG's share price nose-dived to trigger our stop-loss level of RM2.29 before undergoing a last minute rally to gain 7.0 sen (+2.99%) at RM2.41. As our stop-loss level was triggered and the underlying technical outlook had turned sour from here, we are forced to stop out on the stock and will only relook at the stock once its technical picture turns compelling again. 

Source: Kenanga Research - 10 May 2016