PRESBHD (Not Rated). Yesterday, PRESBHD garnered much investors' interest after it received a nod from the government to implement a 15-year government-led border transformation programme worth RM3.54b. PRESBHD surged 13.0 sen (5.6%) to RM2.45 yesterday. Chart-wise, PRESBHD gapped up above its resistance-turned-support level of RM2.40 on strong trading volume. The underlying is still trading on an uptrend above its key moving averages, as the MACD histogram is on the verge of performing a higher high bullish convergence. Should follow-through buying persist, the stock could look to gear higher up towards RM2.57 (R1) and possibly RM2.75 (R2) next. Nonetheless, investors should also note that a ‘Spinning Top’ candlestick has formed which signifies investors' indecision. Hence, we do not discount the possibility of a consolidation to neutralise its overbought condition. Key support is found at RM2.40 (S1) and RM2.13 (S2) next.

SUPERLN (Not Rated). SUPERLN notched a fresh all-time high of RM2.60 yesterday, before closing at RM2.56 (up by 9.0 sen or 3.6%) for the day. Trading volume rose to more than double the daily average, with 825k shares changing hands. SUPERLN has been on an uptrend since June. However, the recent two months had seen the share price stuck in a narrowing range to form a pattern resembling a “Symmetrical Triangle”. As a result of yesterday’s bullish move, the share price has finally broken out of its resistance to signal the start of the next upswing. From here, we expect bias to be on the upside towards RM2.75 (R1). Further resistance is located at RM2.88 (R2) while any weakness towards RM2.48/2.50 (S1) can be viewed as potential entry point. Additional support is located at RM2.40 (S2) below.

Source: Kenanga Research - 22 Nov 2016