SASBADI (Trading Buy, TP @ RM1.72). SASBADI surged 9.0 sen (6.25%) to close higher to RM1.53 yesterday, breaking out from its ‘Ascending Triangle’ chart pattern. A ‘golden cross’ was formed by the 50-day and 100-day SMA trend lines, lending a bullish hand on the mid-to-long-term outlook. Besides, MACD histogram is also setting a higher high on its bullish convergence to portray positive prospect ahead. From here, SASBADI could look to gear further up towards RM1.62 (R1) and possibly towards our TP of RM1.72 (3 bids below our measurement objective of RM1.75). Downside support is located at RM1.46 (S1) followed by RM1.36 (S2), while our stop-loss is placed at RM1.43 (3 bids below S1 level).

OWG (Not Rated). OWG rose 7.0 sen (3.1%) to finish at RM2.35. Earlier in September, OWG confirmed a “Double Bottom” pattern, and had since rallied to a high of RM2.54 before topping out. The share price subsequently pulled back to the short-term uptrend support line recently. Yesterday, however, the share price began to show early signs of a rebound. In particular, the Stochastic indicator had just hooked upwards from oversold levels, which suggest that a new up-leg may be on the cards. From here, we expect OWG to be positively biased towards the October's high of RM2.54 (R1). Should this level be taken out next, we would set our sight on RM2.75 (R2) further up. Downside support is RM2.25 (S1) and RM2.18 (S2) where the Double Bottom neckline is located.

Source: Kenanga Research - 17 Nov 2016