EFORCE (Not Rated). EFORCE recently broke out from its downtrend channel, while settling above all its key moving averages by closing 2.0 sen (1.24%) higher to RM1.63 yesterday. Despite breaking away from its downtrend channel, some selling pressure emerged as depicted by the long upper shadow formed during the past two days in tandem with higher highs. On a brighter note, RSI and Stochastic indicators are observed to be improving gradually by resurfacing from their oversold position. We observe that the key immediate hurdle of RM1.71 (R1) is needed to be breached decisively before the stock could seek higher sight on RM1.96 (R2) further. Failure to break the RM1.71 (R1) level could result in further consolidation by the share price, whereby support levels could be found at RM1.56 (S1) and RM1.44 (S2).

GKENT (Not rated). Yesterday, GKENT rose 8.0 sen (3.3%) to RM2.51, recovering from a three-day pullback which sent the share price to a low of RM2.38 a day earlier. Overall, GKENT remains in a healthy uptrend, with its share price firmly above the key moving averages and indicators (MACD and RSI) on a rising trend. The bullish move yesterday completed a “Morning Doji” candlestick formation, and this signals possible resumption of its uptrend after a brief profit taking phase. From here, we expect GKENT to move to retest its recent high of RM2.72 (R1). Should this level is taken out next, GKENT would then have a clear path towards the next resistance at RM3.00 (R2). However, a break below R1 would be sufficient to trigger a sell. Immediate support is located at RM2.38/2.43 (S1) and RM2.24 (S2) next.

Source: Kenanga Research - 24 Aug 2016