SALUTE (Not Rated). SALUTE had been consolidating over the past two months to form a ‘Wedge’ chart pattern, as it struggled to breach the RM1.38 level convincingly. It was a long-awaited breakout occurrence yesterday, where SALUTE rose 3.0 sen (2.17%) to close at RM1.41 on stronger trading volume. MACD histogram is looking to stage a bullish crossover, while up-trending RSI indicator is promoting positivity to the immediate-term outlook. From here, SALUTE could set sight on its next resistance level of RM1.45 (R1) and possibly RM1.50 (R2) further. Downside supports could be found at RM1.38 (S1) and RM1.30 (S2).

HLIND (Not Rated). HLIND’s share price rose to an intraday high of RM9.59 before finishing at RM9.50, up by 17.0 sen (1.8%) for the day. The share price has been on a long-term uptrend since the start of the year, having more than doubled from RM4.21 (mid-Jan). On a shorter term basis, HLIND had been trending lower over the past two months. However, yesterday’s bullish move signals a breakout above the short-term downtrend line. Similarly, the MACD has now crossed above the Zero-line to reflect a shift in momentum from bearish to bullish. Hence, investors can now expect HLIND to be positively biased. From here, overhead resistance levels to keep an eye on are RM9.80/9.86 (R1) beyond which RM10.52 (R2) is next. Downside support levels are RM9.30 (S1) and RM8.80 (S2) further down.

Source: Kenanga Research - 19 Oct 2016