KANGER (Not Rated). Yesterday, KANGER’s share price rose to a 12-month high with a 2.5 sen gain (10.6%) to RM0.26. The share price broke out of a “Bullish Pennant” formation last Friday, to signal a resumption of its prior uptrend after a pausing for breath over the past month. At the same time, the MACD has also completed a crossover above the signal line to indicate a pick-up in buying momentum. Hence, traders may expect further gains over the next few days with “Flagpole” measurement objective of RM0.32. Immediate resistance levels to look out for are RM0.29 (R1) and RM0.345 (R2). Downside support levels are located at RM0.25 (S1) and RM0.22 (S2).

PRESTAR (Not Rated). Steel processing company PRESTAR saw its share price surging 5.5 sen (10.3%) to RM0.59 on high trading volume. The share price has been range-bound between RM0.40-0.57 (Rectangle formation) for more than a year. Nevertheless, yesterday’s bullish move marks a decisive breakout of the Rectangle pattern. Both the MACD and RSI indicators have also been on a rising trend over the past few months, which reflect a build-up of positive momentum. Traders may consider buying now, or on any pullback towards the RM0.57 resistanceturned- support. From here, we expect further gains ahead with a measurement target of RM0.75 (height of the Rectangle). Resistance levels are located at RM0.61 (R1) and RM0.67 (R2). Downside support is the aforementioned RM0.57 (S1) level, and RM0.50 (S2) further down. 

Source: Kenanga Research - 11 May 2016