YTL (Not Rated). YTL extended its gains for a fourth straight day yesterday, with a 3.0 sen gain (2.0%) to RM1.54. Earlier in October, the share price gap down and had since been on a sustained move lower. Nevertheless, the share price is now showing signs of a recovery, as evidenced by the RSI and Stochastic indicators which have both emerged from oversold level. Furthermore, the MACD indicator has also formed a higher low, and this signals that bearish momentum is waning. While the overall trend remains negative, we expect the recovery to continue in the near-term. From here, we would not rule out the possibility for a move back to RM1.60 (R1) and possibly RM1.66 (R2). Support levels to look out for include RM1.50 (S1) although a breach below RM1.44 (S2) would be highly bearish for the stock.

REXIT (Not Rated). REXIT gained 2.0 sen (3.2%) yesterday to finish at RM0.65 on increased trading volume. Technically speaking, a “Rounding Bottom” pattern has taken shape over the past year, which reflects the gradual shift from a bearish trend earlier in the year to a bullish stance since July. Similarly, the MACD has also been on a healthy uptrend since the middle of this year. Taken in combination, all these suggest that REXIT is positively biased from here. Next, we expect a swift retest of the October high of RM0.69/RM0.70 (R1). Should this level is taken out, we would then set our sights on the Nov 2015 high of RM0.755 (R2). Immediate support levels are RM0.62 (S1), failing which RM0.59 (S2) should offer strong support further below.

Source: Kenanga Research - 7 Dec 2016