CSCSTEL (Not Rated). CSCSTEL has been taking a two-week sideways breather after reaching an all-time high level of RM2.05 last month. Yesterday, the stock rekindled buying interest again by surging 7.0 sen (3.5%) to break out from its previous high level of RM2.05 at RM2.07. Upticks in RSI and Stochastic are lending a hand on the bullish-bias in the immediate term. If the bulls persist on their momentum, the stock could look to gear higher up towards RM2.10 (R1) and possibly RM2.25 (R2) further. On the flip side, failure to hold above the RM2.05 (S1) level in the coming days could result in a consolidation mode with RM1.90 (S2) as the next support level.

MASTEEL (Not Rated). MASTEEL’s share price rose 6.5 sen (7.5%) to finish at the day’s high of RM0.935. Chart-wise, MASTEEL’s shortand long- term trends are bullish, with the share price above all three key SMAs. Yesterday’s bullish move signals a resumption of its uptrend after the past three week’s pullback towards the trend line. Commensurately, the Stochastic Indicator has also hooked up from oversold zone to signal the start of a new upswing. Unless the RM0.84 support is breached, investors can expect bias to remain on the upside for now. Overhead resistances to look out for are RM0.97 (R1) and RM1.06 (R2) while the immediate downside support level is the aforementioned RM0.84 (S1), failing which, RM0.76 (S2) is located further below.

Source: Kenanga Research - 18 Oct 2016