HIAPTEK (Not Rated). HIAPTEK inched up RM0.005 (+1.72%) to stage a breakout from its 2-month trend channel on increased trading volume, settling at RM0.295 yesterday. The MACD histogram staged a bullish convergence above the zero-line on the back of improved buying momentum as depicted by the hook up seen in RSI and Stochastic. With the booming hype surrounding steel players, HIAPTEK could be one of the laggard plays. Nonetheless, the appearance of an ‘inverted hammer’ candlestick yesterday indicates that sellers are still in play. Thus, we advocate interested traders to only enter the stock when it has swiftly taken out the RM0.30 (R1) level decisively. Next overhead resistance is seen at RM0.33 (R2), while supports are located at RM0.275 (S1)/RM0.26 (S2).

LSTEEL (Not rated). LSTEEL is also another counter whom benefited from the hype surrounding steel players, surging 9.0 sen (21.4%) to close at RM0.51. The stock has broken out from its resistance-turned-support level of RM0.47 (S1) on the back of strong trading volume yesterday. MACD histogram has staged a bullish crossover, while the stock is also experiencing a resurgence of buying momentum showcased by the positive emergence of RSI and Stochastic from their oversold region. Should follow-through buying persist on the stock, we view that the stock could set sights higher at RM0.55 (R1) and possibly RM0.59 (R2) next. Support levels could be found at RM0.47 (S1) followed by RM0.43 (S2) next.

Source: Kenanga Research - 15 Sep 2016