YONGTAI (Not Rated). Since its December low (RM0.63), YONGTAI has climbed by as much as 53.2% to a recent high of RM0.965 (8-June). Over this period, occasional pullbacks have been relatively shallow and YONGTAI’s has remained on a relatively steady uptrend. Similarly, the MACD is on a rising trend, while the Stochastic indicator has been exhibiting clear cyclical patterns. Of note, YONGTAI’s share price is now in the midst of retesting its recent high after a brief pause for breath. The share price closed up by 2 sen (+2.1%) at RM0.96 and traders should watch for a breakout above the RM0.965 level over the next few days. Should a breakout occur, YONGTAI would then have a clear path towards RM1.04 (R1) and possibly RM1.09 (R2) next. Downside appears limited, with strong support pegged at RM0.92 (S1) and RM0.89 (S2).

KANGER (Not Rated). Since reaching an all-time high level of RM0.315 back in late-May, KANGER has been undergoing a consolidation phase to neutralise its overbought situation. Yesterday, buying interest had resurfaced on the stock as it surged 1.5 sen (5.08%) to close at RM0.31 on the back of higher trading volume. The underlying outlook is positive as the share price is trading above and supported by the 20- day SMA trend line. MACD histogram is looking to stage a bullish crossover, while strong uptick seen in Stochastic is supportive of the bullish move. Should the share price manage to stage a decisive close above the RM0.315 resistance, KANGER could look to climb further up towards RM0.36 (R2) next. Meanwhile, support levels are located at RM0.29 (S1) and RM0.26 (S2) respectively

Source: Kenanga Research - 23 Jun 2016