GPACKET (Not Rated). GPACKET rose for a second day on high volume of 13.5m shares. For the day, the share price was up by 0.5 sen (2.0%) at RM0.26. Chart-wise, the GPACKET has been trading within a downtrend channel since November last year. Nevertheless, the share price has finally broken out of this channel as a result of the bullish move these past two days. At the same time, the MACD indicator has also broken above the zero-line to reflect a shift in momentum from bearish to bullish. Collectively, these signalled that the share price may have bottomed out. From here, overhead resistance levels to look out for are RM0.275 (R1) and RM0.295 (R2). Immediate supports include RM0.255 (S1) where investors may buy on weakness. Failing which, the next major support is located at RM0.21 (S2).

GUNUNG (Not Rated). GUNUNG surged 4.0 sen (10.3%) to stage a breakout from multi key resistance levels to close at RM0.43 yesterday. In tandem with the strong trading volume, buying momentum is pilling up on the stock in accordance with the hook up in RSI indicator. MACD histogram has also staged a bullish crossover above its signal line to lend a hand on the positive near-term outlook ahead. Should investors continue to ride on its bull momentum, the stock could possibly set sight to retest its multi-month resistance level of RM0.48 (R1) before heading towards RM0.50 (R2), if it takes out the R1 level swiftly. Key support levels are found at RM0.41 (S1) followed by RM0.37 (S2).

Source: Kenanga Research - 24 Nov 2016