TUNEPRO (Trading Buy, TP @ RM1.67). TUNEPRO rose 10.0 sen (+6.94%) to settle at RM1.54 on the back of strong trading volume, staging a technical breakout from its uptrend channel resistance level of RM1.50 (S1). With the persistent climb yesterday, the underlying outlook is bullish-bias at this juncture. Besides, MACD histogram has also broken out from its resistance line with a bullish convergence, while uptick in both RSI and Stochastic are reflecting the rising buying momentum. As we believe that the positive technical picture could offer a shortterm trading play, we reckon that follow-through buying interest could possibly rally the share price further towards RM1.59 (R1) and possibly towards our target price objective of RM1.67 (3 bids below the RM1.70 (R2) resistance level). Meanwhile, immediate support is noted at RM1.45 (S1) followed by RM1.35 (S2), while we recommend investors to place a protective stop-loss 3 bid below the S1 level at RM1.42.

AJI (Not Rated). Among the top three gainers for the day was AJI, which rallied by 60.0 sen (5.2%) to RM12.10. Trading volume was relatively elevated, albeit with just 161.7k shares being transacted. Over the past month alone, AJI’s share price had risen by as much as 34% from RM9.00 (18-Apr). Nevertheless, yesterday’s bullish move has triggered a breakout of a “Bullish Pennant” formation. This indicates that the share price is poised to continue its prior uptrend after a brief pause. From here, expect further gains over the coming weeks towards the measurement objective of RM15.22. Resistance levels are likely to be encountered at RM13.60 (R1) and RM14.50 (R2), while strong support is envisaged at RM11.50-RM12.00 (S1) and RM9.80 (S2) further down. 

Source: Kenanga Research - 18 May 2016