SALUTE (Not Rated). SALUTE surged 11.0 sen (9.57%) to stage a technical breakout from its ‘Descending Triangle’ chart pattern, settling at RM1.26 at the close. Buying interest has reemerged after the stock underwent a 1-month consolidation period after reaching a high of RM1.26 back in July. The bullish crossover above the zero-line by MACD histogram backed by strong uptick seen in RSI indicator is indicating a positive outlook on the stock, reflecting that bullish momentum is picking up. Currently facing an immediate hurdle of RM1.26 (R1), a swift takeout of the aforesaid level would allow the stock to seek a higher high at RM1.35 (R2). Immediate supports are located at RM1.17 (S1) followed by RM1.07 (S2).

OKA (Not Rated). OKA rallied 7.0 sen (5.4%) to RM1.36 yesterday on high trading volume. The share price has been on a healthy uptrend since August last year, and climbed from a low of RM0.68 to as high as RM1.38 last month. Recently, the share price pulled back to RM1.22, before paring losses over the following three weeks. Nevertheless, it wasn’t until yesterday’s move that the share price has signaled a continuation of its prior uptrend. In particular, the MACD has just crossed above the signal line to reflect a decisive change in momentum from bearish to bullish. From here, investors can expect a retest of the August high of RM1.38 (R1). Should this level be taken out next, further gains would then be expected towards RM1.55 (R2). Downside support levels are RM1.26 (S1) and RM1.22 (S2) just below.

Source: Kenanga Research - 9 Sep 2016