VIS (Not Rated). VIS’s share price rose 2.5 sen (11.1%) to finish at the day’s high of RM0.25 on high trading volume of 3.0m shares. Chart wise, VIS has broken out of its month-long consolidation phase of between RM0.21 and RM0.225, The share price is now in the midst of challenging the 38.2% Fibonacci Retracement level at RM0.25. Momentum is bullish with the MACD in a bullish crossover with the signal line. Hence, we believe a break above this RM0.25 (R1) level would be likely in the near term. Once taken out, upside resistances to look out for are RM0.28 (R2) and RM0.32 (R3). Downside support is RM0.225 (S1) where investors may consider buying on weakness, failing which, the next support is RM0.20 (S2).

ULICORP (Close Position). To recall, we previously recommended a ‘Trading Buy’ call on ULICORP (2 September) after the share price staged a rebound from its strong psychological support level of RM3.60. Since then, the stock had trended up towards our TP of RM4.46 but had consolidated barely after achieving it, while trading volume has started to dissipate. Besides, the stock declined 12.0 sen (3.0%) to close at RM3.87 yesterday, breaking down from its key support-turned-resistance level of RM3.90 (R1). As the technical picture has turned bearish-bias at this juncture, we opt to close position on the stock while awaiting another rebound signals to enter the stock.

Source: Kenanga Research - 28 Oct 2016