AEMULUS (Not Rated). Yesterday, AEMULUS closed at RM0.345, up by 0.5 sen (1.5%) for the day. While the chart does not appear compelling at first glance, closer inspection suggests that the share price may be at an inflection point after a six-month downtrend. Notice that AEMULUS commenced a three-day surge last week which saw the share price gaining 29% from its RM0.275 low. More importantly, the share price registered higher highs supported by high volume. Conversely, trading volume has been low during the past two days’ sideways consolidation. As such, we reckon that the share price is merely pausing for breath before the next leg towards RM0.38 (R1) and RM0.41 (R2). Only a decisive break-down below RM0.33 (S1) would negate our view. In this eventuality, the next support is located further down at 0.27 (S2).

EATECH (Not Rated). EATECH has formed an uptrend channel since the start of the year, while it has been trading sideways for over the past month on the back of low trading volume. The share price is currently trading at the trend channel support level in tandem with all its key SMA levels. The oversold situation seen by the Stochastic are suggesting that this could be a good opportunity for investors to bottom-fish on the stock betting for a potential rebound play over the horizon. Nonetheless, the lack of trading volume as well as tepid MACD histogram and RSI indicator have yet to signal the emergence of a reversal play. From here, we advocate interested investors to look out for a strong volume share price surge to signal a rebound before entering the stock. Do note that resistance levels are seen at RM1.20 (R1) and RM1.30 (R2) next, while supports are found at RM1.10 (S1) and RM1.00 (S2).

Source: Kenanga Research - 15 Jun 2016