KINSTEL (Not rated). KINSTEL has been consolidating over the past few months and found strong support footing at the RM0.07 (S1) level. The stock has never successfully broken out from its 200-day SMA trend line since August 2015, staging a technical pullback whenever it touches to the aforesaid moving average. Yesterday, KINSTEL displayed a strong volume surge to trade to an intraday high level of RM0.085 before settling on its 200-day SMA trend at RM0.08. Strong hook-up seen by RSI and Stochastic are also suggesting that buying interest on the stock is resurfacing. From here, interested investors should look out for a higher high formation above the 200-day SMA level before entering the stock, whereby failure to perform the aforesaid could result in a prolonged consolidation display towards RM0.07. Resistances are noted at RM0.085 (R1)/RM0.10 (R2), while supports are capped at RM0.075 (S1)/RM0.07 (S2).

LSTEEL (Not rated). Steel-related company LSTEEL staged a strong 4.0 sen (10.8%) rally to a 4-year high of RM0.41. Chart-wise, the share price broke out of a “Pennant formation” last week. However, it wasn’t until the past two days’ move that the share price has demonstrated a more convincing move. Coupled with the high trading volume and upticks in the indicators, we expect further gains towards the Pennant measurement objective of RM0.57. In the meantime, overhead resistances to look out for are RM0.43 (R1), RM0.47 (R2) and RM0.50 (R3). Support levels are RM0.31 (S1) and RM0.27 (S2) further down.

Source: Kenanga Research - 17 Aug 2016