IHH (Not Rated). IHH surged 19.0 sen (2.96%) to close at RM6.60 yesterday on the back of stronger trading volume, breaking out from its multi-month downtrend resistance-turned-support trend line of RM6.50 (S1). MACD histogram has also converged bullishly, crossing above its zero-line for the first time in 4 months. The pilling buying momentum on the stock is also reflected by the up-trending RSI and Stochastic, albeit the latter is already in the overbought territory. From here, IHH could set sights on RM6.69 (R1) and possibly RM6.79 (R2) next. Downside supports are limited at RM6.50 (S1) and RM6.39 (S2).

AJI (Not Rated). On the back of increased trading volume, AJI rose 52.0 sen (3.98%) to close higher at RM13.60. Currently settling above its 20-day and 50-day SMAs, the stock has staged a breakout from its short-term downtrend resistance trend line of RM13.50 (S1). MACD histogram has staged a bullish crossover, while upticks seen by RSI and Stochastic are suggesting that the bulls are starting to get in play. Follow-through buying to take out its immediate resistance level of RM13.94 (R1) is necessary for the stock to set sight at RM14.50 (R2). On the flip side, a breakdown back below its resistance-turned-support trend line at RM13.50 (S1) would see downside limited towards RM13.08 (S2).

Source: Kenanga Research - 1 Dec 2016