CANONE (Not Rated). CANONE has been trading along a widening channel over the past six months. Yesterday, the stock rose 11.0 sen (3.25%) to stage a rebound from its channel support trend line to close at RM3.50. The MACD histogram has staged a bullish crossover albeit still under its zero-line, while uptick in RSI and Stochastic from their oversold position are suggesting that buying momentum is picking up. Should there be follow-through buying interest, the stock could look to trend further up towards RM3.60 (R1) and possibly retest its previous high level of RM3.80 (R2). Any decisive break above its multi-month high level of RM3.80 (R2) will see the stock gear further up towards its trend channel resistance of RM4.00 (R3). Meanwhile, downside support is capped at RM3.40 (S1) followed by RM3.20 (S2).

APFT (Not Rated). After eight months of sideways trade, APFT finally broke out of its RM0.04-RM0.06 range yesterday. At the closing bell, the share price was up 1.0 sen (16.7%) at RM0.07 – just off its intra-day high of RM0.075. 58.7m shares changed hands for the day, more than 10x the 30-day moving average. Consequently, key momentum indicators have all spiked upwards to reflect this sudden bullish shift in sentiment. From here, expect bias to be on the upside. The next resistance to look out for is RM0.085 (R1) and RM0.115 (R2) further up. Any return to the RM0.06 (S1) resistance-turned-support may offer an opportunity to enter. Failing which, a solid floor will be present at RM0.04 (S2) below.

Source: Kenanga Research - 18 Nov 2016