DKSH (Not Rated). Yesterday, DKSH’s share price rose 20.0 sen (3.4%) to RM6.15 on increased volume. DKSH is traditionally a thinly traded counter. However, liquidity has improved notably since the share price broke out of its sideways range in July (RM4.00). From then, the share price had also commenced a healthy uptrend to as high as RM6.67 just last month. More recently, the share price had pulled back to the uptrend support – providing investors with yet another opportunity to enter. With yesterday’s bullish move, the technical picture suggests that DKSH is poised for the next leg higher. We reckon that the share price is likely to stage a retest of the October's high of RM6.67 (R1) fairly soon. Should this level be taken out decisively, DKSH would then have a clear path towards RM7.35 (R2) further up. Downside support is RM5.83 (S1), below which investors may consider placing stops.

KRONO (Not Rated). KRONO has been displaying its ability to resume prior uptrend, rebounding strongly from its support level of RM0.23. Yesterday, the share price surged another 2.0 sen (7.27%) to break out from its multi-month resistance-turned-support level of RM0.285 (S1) to close at RM0.295. MACD histogram is projecting a bullish convergence while breaching above its zero-line, lending a hand on the bullish-bias outlook ahead. The pilling buying momentum on the stock is also showcased by the up-trending RSI and Stochastic. From here, we reckon that KRONO could look to replicate its prior uptrend by setting sight at RM0.31 (R1) before gearing towards RM0.335 (R2). Support levels are envisaged at RM0.285 (S1) followed by RM0.255 (S2).

Source: Kenanga Research - 23 Nov 2016