TUNEPRO (Take Profit). To recap, we previously recommended a Trading Buy on TUNEPRO (report dated 18 May 2016) with a target price of RM1.67. Recently, TUNEPRO rallied to a multi-month high level of RM1.66 (just 1.0 sen short of our TP) before undergoing a bearish reversal. The continued slip by 4.0 sen (2.47%) to RM1.58 on the back of bearish hook-down of RSI and Stochastic indicators during yesterday’s session prompted us to take profit on the stock. We expect the stock to undergo further retracement in the next few days towards its uptrend channel support to neutralise its overbought condition. Supports are now located at RM1.57 (S1) and RM1.49 (S2), whereby interested investors could look out of any rebound play at the aforesaid levels. Overhead resistances are capped at RM1.67 (R1) followed by RM1.75 (R2) next.

HSL (Not rated). HSL rose for a second straight day to close at RM1.78, up by 2.0 sen (1.1%). The chart pattern is showing early signs of a downtrend reversal following a decisive breakout of its RM1.61-RM1.73 sideways trend. The MACD is now on an uptrend, and had just crossed above the zero-line for the first time since April. Combined, these signals indicate that selling pressure has dissipated, and HSL is now poised for a sustained rebound. An anticipated “Golden Crossover” by the 20- and 50-day should also spur wider participation over the coming days. From here, investors can expect HSL to rebound to RM1.87 (R1), and possibly RM2.00 (R2) further up. Downside support is seen at RM1.73 (S1), and at its low at RM1.61 (S2).

Source: Kenanga Research - 22 Jul 2016