ACOUSTEC (Trading Buy, TP @ RM0.915). Yesterday, ACOUSTEC surged 4.0 sen (5.06%) on the back of strong trading volume to stage a technical breakout from its ‘Pennant’ chart pattern by closing higher at RM0.83. The underlying outlook is looking positive as the share price is currently trading above all its key SMAs (which are also trending upwards). Besides, MACD histogram has also undergone a strong bullish convergence further away from its zero-line to lend a hand on the bullish-bias outlook. From here, we reckon that the share price could be poised to trend further up towards RM0.88 (R1) and possibly towards out target price objective of RM0.915 (3 bids below RM0.93 (R2) level). Immediate support is seen at RM0.80 (S1) followed by RM0.76 (S2), while a conservative protective stop-loss level is recommended 3 bids below the S1 level at RM0.785.

HLIND (Not Rated). Yesterday, HLIND announced its 9M16 net profit which showed a 36.9% YoY jump to RM177.7m. The share price rose to a fresh all-time high with a 29.0 sen (3.9%) surge to RM7.78. From a technical perspective, HLIND has been on an uptrend since its RM3.95 low in December 2014. Until yesterday’s bullish move, the share price had been struggling to break above the crucial RM7.54 level (2014 Top) resistance level over the past month. At the same time, the MACD has also crossed above the signal line to indicate a pick-up in positive momentum. As such, investors may expect the share price to chart further gains towards RM8.39 (R1) and possibly RM8.92 (R2) further up. Support is pegged at RM7.54 (S1), failing which the next support is located at RM7.15 (S2). 

Source: Kenanga Research - 17 May 2016