CSCSTEL (Not Rated). Buoyed by the recent hype among steel-players as of recent, CSCSTEL staged yet another technical breakout from its ‘Descending Triangle’ chart pattern after surging 10.0 sen (5.99%) to close at RM1.77 yesterday. The primary trend of the share price is looking positive, as the stock is currently trading above all its key moving averages on the back of strong bullish convergence seen in the MACD histogram. Nonetheless, the deep overbought condition displayed by RSI and Stochastic indicators compelled us take a more conservative approach. Should follow-through buying fail to materialise, we do not discount the possibility of short-term retracement plaguing the stock. On hindsight, continuous interest could lead the stock to attempt a higher high at RM1.81 (R1) and possibly RM1.92 (R2) in the near-to-mid-term. Key support levels to note are RM1.70 (S1) and RM1.58 (S2).

DESTINI (Not rated). DESTINI, a provider of maintenance, repair and operations (MRO) for aircraft, ships and trains; has attracted much investors’ interest after MTD Capital Bhd emerged as a new substantial shareholder with 6.42% interest. Yesterday, DESTINI slipped 0.005 sen (0.6%) during the final minutes to close at RM0.835 on strong trading volume. The stock had recently broken out from its 1-month consolidation phase resistance-turned-support level of RM0.82 (S1). Despite uptick seen in RSI and Stochastic indicators indicating the improved buying momentum on the stock, the overbought conditions of both respective indicators are placing doubt on the near-term upside, especially when a long-shadow candlestick was formed yesterday. We advocate interested investors to only buy on weakness, especially the stock consolidates towards its immediate support level of RM0.382. Resistance levels are envisaged at RM0.88 (R1) and RM0.92 (R2) next, while key support levels are capped at RM0.82 (S1) followed by RM0.74 (S2).

Source: Kenanga Research - 14 Sep 2016