OPENSYS (Not Rated). In-line with the improvement in broad market sentiment, OPENSYS rose 2.0 sen (6.6%) to RM0.325 on increased trading volume. The share price has been trading sideways for almost two years, but within a narrowing range. Yesterday’s bullish move marks a major resistance breakout to confirm a “Symmetrical Triangle” pattern and this signals an uptrend continuation after long hiatus. At the same time, the MACD has been on a mild rising trend with a positive Signal-line crossover reflecting a shift in momentum from bearish to bullish. From here, investors may expect further gains ahead towards the measurement objective of RM0.45. Until then, overhead resistances to look out for are located at RM0.34 (R1) and RM0.37 (R2). Downside support levels are envisaged at RM0.30 (S1) and RM 0.27 (S2).

ARANK (Not Rated). ARANK rose 3.5 sen (4.1%) to close at a fresh all-time high of RM0.895. Trading volume was almost triple the 30-day moving average. On the daily chart, ARANK had previously broken out of a “Rectangle” pattern earlier in the month. The share price subsequently consolidated back to the “Rectangle” resistance-turned-support before staging a two-day run-up to yesterday’s close. Now with a clear path ahead, expect bias to be on the upside towards RM0.945 (R1) and RM0.99 (R2) further up. Investors may buy now, or on any pullback towards the RM0.830-RM0.88 (S1) support levels. For now, the technical picture is deemed bullish until and unless the RM0.72 (S2) support is violated.

Source: Kenanga Research - 19 Jul 2016