PESTECH (Not Rated). PESTECH was one counter among many that faced immense sell-down last week, and had since found some footing at the RM1.42/RM1.45 level. Recently, some buying support emerged with the stock recording three-consecutive days of gains since Monday, where it closed 2.0 sen (1.35%) to settle at RM1.50 yesterday. MACD histogram is looking to stage a bullish crossover, while the inclining of RSI and Stochastic from their respective oversold territory are also supportive of the case that buying interest is resurfacing. We also do observe that long upper shadows appear over the past few days to hinder the stock’s attempt for a higher high. From here, we reckon that a swift recapture of the RM1.56 (R1) level would be comfortable for the stock to challenge RM1.64 (R2) next. Support levels are seen at RM1.42 (S1)/RM1.30 (S2).

SBCCORP (Not Rated). After an uneventful morning session, SBCCORP surged 2.5 sen (3.6%) in the afternoon session to close at the day’s high at RM0.72. Trading volume was elevated, and the share price broke out of a 4-month sideways channel. Key-indicators are positive as the MACD has just turned bullish, with the RSI also showing a recent uptick above the 50-point mark. Bias is now to the upside, and from here, investors may expect a move to retest the confluence of resistance levels at RM0.725/RM0.735 (R1). Should these resistance levels be taken out next, a further climb towards RM0.80 (R2) would be within view. Downside appears fairly limited with fair support expected at the RM0.71/RM0.695 range (S1). Further support is pegged at RM0.685 (S2) although a break below would be highly negative.

Source: Kenanga Research - 25 Aug 2016