HIAPTEK (Trading Buy, TP @ RM0.375). To recap, we previously featured HIAPTEK (report dated 15th September 2016) after the share price broke out from its 2-month trend channel on increased trading volume. Yesterday, HIAPTEK garnered stronger follow-through buying interest to decisively breakout from its key resistance-turned-support level of RM0.32 (S1), building more convictions on a bullish play ahead. Trading above all its key moving averages for the first time since May 2016, the MACD histogram is also converging bullishly above the zeroline to paint a rosier outlook. With the dominant bulls in play, we reckon that the stock could look to close its previous gap formed back in late- May at RM0.36 (R1) and possibly RM0.39 (R2) next in the near-term. We view that yesterday’s strong display could offer investors a good opportunity to ride on the uptrend tide for a short-term play, with target objective set at RM0.375 (3 bids below the R2 level). Meanwhile, key support levels are noted at RM0.32 (S1) followed by RM0.29 (S2), whereby a strict stop-loss is placed at RM0.305 (3 bids below the S1 level).

GTRONIC (Not Rated). Earlier in the year, GTRONIC began a downtrend which saw its share price losing 60% from its January high of RM6.91. The share price has since bottomed out at RM2.75 with the technical outlook now appearing significantly better. For one, the 20- and 50-day SMAs have just completed a “Golden Crossover” last week, while the MACD and RSI are both on a rising trend. Yesterday, the share price closed at RM3.73, up by 25.0 sen (+7.2%). The share price is now in the midst of retesting a confluence of resistance levels (May high and 23.6% Fibonacci Retracement level). Should this RM3.73 (R1) level be taken out in a decisive manner, GTRONIC would then have a clear path towards RM4.34 (R2) and possibly RM4.83 (R3) next. Downside support levels are RM3.15 (S1), and RM2.75 (S2) below.

Source: Kenanga Research - 27 Sep 2016