INSAS (Not Rated). INSAS rose to an intra-day high of 75.0 sen yesterday, before closing at 74.0 sen (up by 2 sen or 2.8%) for the day. In November last year, INSAS retreated from a high of 88.0 sen to as low as 64.0 sen (June-2016). The share price has since bottomed out with the overall trend now showing healthy signs of a recovery. In particular, the share price is now firmly above all three key SMAs. A “rounding bottom” pattern has also taken shape on the daily chart and INSAS is now in the midst of retesting the crucial 75.0 sen resistance level (R1). The key momentum indicators are signalling a healthy build-up in buying interest and this suggests that a punch-through the 75.0 sen level is likely. Should this be the case in the near-term, further gains are expected towards 79.0 sen (R2) next. Downside support levels are RM0.705 (S1) and RM0.65 (S1).

KOBAY (Not Rated). KOBAY surged 21.0 sen (15.8%) to close at RM1.54 after the company announced a 1-for-2 bonus issue a day earlier. Chart-wise, KOBAY’s share price gapped up at the opening, and sustained a climb higher throughout the day. With the bullish move, KOBAY has broken above the July's top at RM1.41, in addition to the 23.6% Fibonacci Retracement level at RM1.52. The 20-day SMA has also completed a “Golden Crossover” with the 100-day SMA as a result. Hence, investors may expect KOBAY to be positively biased from here. Overhead resistances to look out for are RM1.75 (R1) and RM1.94 (R2) while downside supports include the RM1.41 (S1) resistanceturned-support and the RM1.14 (S2) bottom.

Source: Kenanga Research - 27 Oct 2016