ECONBHD (Not Rated). Yesterday, ECONBHD surged 10 sen (6.37%) to stage a breakout from its key resistance-turned-support level of RM1.61 (S1) to close at a fresh record high level of RM1.67. On the back of strong trading volume, the underlying outlook is looking promising given the hook up seen by the MACD histogram and RSI indicator. Well supported by all its key moving averages, the stock could poise to close higher up towards RM1.76 (R1) and possibly RM1.85 (R2) next in the near-to-mid term. Meanwhile, we do not discount the chances of any slight pullback breather towards RM1.61 (S1) in the coming days given its overbought Stochastic. Any retracement towards the aforesaid S1 level would be a good opportunity for investors to Buy on Weakness. Next level of support is seen at RM1.53 (S2).

PUNCAK (Not Rated). Earlier in March, PUNCAK’s share price retreated from a high of RM1.48 to as low as RM0.985 (June). The share price has since bottomed out, and is now on a short-medium term uptrend. Yesterday, the share price closed at RM1.15, up by 2 sen (+1.8%) on increased volume (2.1m shares). Coupled with the MACD-Signal line crossover and the uptick from the Stochastic indicator, the technical picture suggests that PUNCAK is poised for further gains in the near term. From here, expect a gradual move to retest the August high of RM1.27 (R1). Should this resistance be taken out next, traders may then set their sights on RM1.36 (R2) further up. Downside support is RM1.10 (S1), although a break below will be highly negative with the next support located at RM0.985 (S2).

Source: Kenanga Research - 23 Sep 2016