ARANK (Not Rated). On the back of strong trading volume, ARANK surged 5.0 sen (6.21%) to stage a technical breakout from its multi-month channel resistance level of RM0.835 to settle at RM0.85 yesterday. MACD histogram has also just undergone a bullish crossover from its signal line to lend a hand on the bullish-bias outlook. The strong upticks in both RSI and Stochastic reflecting the burgeoning buying interest are also supportive of a positive uptrend. If the bullish momentum persists, the share price could possibly climb further up towards RM0.88 (R1) and possibly RM0.93 (R2) next. Interested investor could take this opportunity to enter the stock, but should be aware that ARANK’s immediate support level is seen at RM0.835 (S2) followed by RM0.79 (R2).

GBGAQRS (Not Rated). GBGAQRS surged 8.5 sen (8.9%) on heavy trading volume to stage a multiple resistance breakout to close at RM1.04 yesterday, after undergoing a sideways consolidation phase for over the past two months. The underlying outlook is looking positive as the share price is trading above all its key SMA level. MACD histogram has also staged a bullish crossover with RSI and Stochastic hooking up to indicate much conviction from investors on this stock. If follow-through buying emerges, we reckon that the share price could look to rally further towards RM1.08 (R1) and possibly RM1.15 (R2) next. Nonetheless, we do not discount the possibility of mild profit taking on the stock considering that the surge could have been overdone, based on the overbought Stochastic. Hence, we advocate investors to take advantage of any share price retracement towards the immediate support level of RM1.03 (S1).

Source: Kenanga Research - 5 Jul 2016