TNLOGIS (Not Rated). TNLOGIS was in investors’ limelight recently after an industry analyst initiated research coverage with a positive review. The share price broke out from its multi-year resistance level of RM1.50 last week, while surging another 8.0 sen (5.19%) to settle at RM1.62 yesterday. The primary trend of TNLOGIS is encouraging as it is currently supported by all its up-trending key SMAs. Besides, it has also broken out from its 2-month regression channel with strong trading volume, lending a supportive hand on the near-to-mid term outlook. The bullish convergence seen by the MACD histogram is also supporting the bullish cause. Nonetheless, we observe that both RSI and Stochastic have ventured into their respective overbought zone, signalling a possibility of a short-term pullback consolidation. From here, we recommend interested investors to look to buy on any dips towards the strong resistance-turned-support level RM1.50 (S1), with short-term upside targets set at RM1.64 (R1) and RM1.79 (R2) next.

EMETALL (Not Rated). Steel-related company EMETALL surged 5.5 sen (7.3%) yesterday to RM0.805 on high trading volume. Earlier in April, it broke out of its sideways trend at RM0.31 and almost tripled to RM0.92 (9-Jun) within the next two months. The share price subsequently pulled back to as low as RM0.63 before managing an equally quick recovery to yesterday’s RM0.805 close. Overall, EMETALL remains in a healthy uptrend. The MACD is still firmly above the zero-line, and the share price is poised for further gains ahead. From here, we expect the share price to retest its recent high of RM0.92 (R1). Should this level be taken out, EMETALL would then have a clear path towards RM1.07 (R2) next. Downside support levels are RM0.77 (S1), and RM0.63 (S2) further down.

Source: Kenanga Research - 12 Jul 2016