MASTEEL (Not Rated). Yesterday, MASTEEL surged 5.5 sen (8.1%) to close at RM0.73 on high trading volume. This follows an earlier pullback over the past two weeks which saw MASTEEL retreating to as low as RM0.635. The bullish move coupled with an upward trending MACD and RSI, indicates that MASTEEL is poised to stage a retest of the recent high of RM0.77 soon. Should the RM0.74 (R1) resistance be taken out decisively, the share price would then confirm a “cup-and-handle” chart pattern. This would pave the way for a further move towards RM0.80 (R2), and possibly RM0.83 (R3) next. Supports can be found at RM0.68 (S1), RM0.65 (S2) and RM0.62 (S3).

HARTA (Not Rated). The rubber glove sector is in the limelight as of recent, seeing players such as TOPGLOV notching a gain of 14.0 sen (+3.0%) yesterday on strong trading volume. HARTA also received some spill-over attention, breaking out from its multi-month resistanceturned- support level of RM4.50 (S1) on high trading volume. MACD histogram is also displaying its bullish convergence away from its zero-line on the back of positive climb seen by the RSI, indicating that buying interest is returning to the stock. With the main hurdle (RM4.50 resistance) surpassed, the stock could set sight on a gradual climb towards RM4.70 (R1) and possibly RM4.98 (R2) further. Immediate downside support is seen at RM4.50 (S1) and RM4.23 (S2) next.

Source: Kenanga Research - 6 Sep 2016