PIE (Trading Buy, TP@RM2.17). PIE had undergone heavy correction from its all-time high level of RM2.72 set back in April to a low of RM1.83 recently. The oversold counter had attracted investors who look to bargain hunt on the stock, whereby it rose 3.0 sen (1.57%) to break out from its consolidation zone resistance level of RM1.92 to settle at RM1.94 yesterday. MACD histogram has also performed a bullish crossover signal, while RSI and Stochastic indicator have hooked up strongly from their respective oversold condition to reflect the resurgence of buying momentum on the stock. With the positive technical indicators observed, we reckon that this could be a good opportunity for investors who look to accumulate the stock with expectation that the stock could stage a bullish rebound play towards RM2.00 (R1) and possibly our target objective of RM2.17 (3 bids below RM2.20 resistance (R2)) next. Meanwhile, we note that its immediate support level is seen at RM1.92 (S1) with a strict stop-loss level at RM1.79 (3 bids below RM1.82 (S2)).

PUNCAK (Not Rated). PUNCAK rose 7.0 sen (6.4%) yesterday to RM1.16 on high volume. Earlier in July, the share price broke out of its longterm downtrend line (RM1.10), and has since been trading within a healthy short-medium-term uptrend. Yesterday’s bullish move marks a continuation of this uptrend after a brief pullback to the RM1.08 level. In addition, the Stochastic indicator has also hooked up from oversold levels to signal the start of the next leg up. From here, we expect the share price to stage a retest of the August high of RM1.27 (R1). Should this level be taken out next, further upside is at RM1.37 (R2). Downside appears fairly limited at RM1.08 (S1), although a break below would be highly negative. Further support is located at RM0.985/RM1.00 (S2).

Source: Kenanga Research - 7 Sep 2016