IQGROUP (Not Rated). Yesterday IQGROUP surged to a 15-month high of RM2.58 (jumped 17.0 sen or 7.1%) for the day. Trading volume was elevated with 457k shares transacted. Overall, the share price has been on a healthy uptrend since July with key SMAs (20-, 50-, 100- day) in a “Golden Crossover”. As a result of yesterday’s bullish move, the share price has broken out of a 3-week consolidation phase to signal a continuation of its prior uptrend. The MACD has also crossed above its Signal line to reflect this sudden pick-up in momentum. Hence, we expect the share price to climb higher over the coming weeks with near-term resistance levels RM2.63 (R1) and RM2.71 (R2). Solid support should be present at RM2.40-RM2.45 (S1) where investors could look to enter.

EKOVEST (Not Rated). EKOVEST registered a third-straight day of gains with a 5.0 sen (2.1%) climb to RM2.38 yesterday. The share price has been on a steady uptrend since June, having risen from a low of RM1.43 (24-Jun) to as high as RM2.60 just last month. More recently, however, the share price had pulled back to RM2.20 and is now poised for an uptrend resumption. Notice that the MACD has just intersected the Signal line, while the RSI has also hooked upwards above the neutral 50-point mark. From here, we expect further gains in the near-term, with immediate resistance RM2.48 (R1) and the aforementioned November high of RM2.60 (R2). Should R2 be taken out next, EKOVEST would then have a clear path towards RM2.78 next. Key support is present at RM2.20 (S1) although a break below would be highly negative for the stock.

Source: Kenanga Research - 14 Dec 2016