SENDAI (Not Rated). Yesterday, SENDAI gap up at the opening bell and continued to climb to as high as RM0.565 before finishing at RM0.56, up by 3.0 sen (5.7%). Trading volume rose to 12.3m shares, more than double the 30-day average of 5.2m shares. On the daily chart, SENDAI has been on a short-medium-term uptrend since September. The past two weeks have seen SENDAI coming under profittaking activities towards the uptrend support. However, the share price is now in the midst of staging a rebound (Also, note that the Stochastic indicator has hooked upwards from oversold levels). From here, expect bias to be on the upside towards RM0.59 (R1) and RM0.65 (R2). Downside support levels are RM0.50/RM0.51 (S1) where investors may buy on weakness.

GESHEN (Not Rated). GESHEN rose 4.0 sen (2.5%) to RM1.66 yesterday. Chart-wise, the share price has been trading within an uptrend channel since October. Trading volume has been consistent with a healthy uptrend, i.e. rising volume during upswings, and lower volumes during pullbacks over many months. Now that the share price is hovering close to the channel support, we reckon that a resumption of its prior uptrend is on the horizon. Notice that the MACD remains above the Zero-line while the Stochastic indicator is beginning to emerge from oversold levels. Investors may enter now, and target upside resistances at RM1.86 (R1) and RM1.95 (R2). Downside support levels are RM1.62 (S1) and RM1.52 (S2).

Source: Kenanga Research - 9 Dec 2016