YONGTAI (Take Profit @ RM1.30). Earlier in October, we recommended YONGTAI at RM1.21 after it broke out of its sideways consolidation phase (report dated 21-Oct). Since then, the share price had endured few turbulent weeks, before finally climbing to our technical target price of RM1.37 on Tuesday. Yesterday, the share price closed at RM1.30, down by 5.0 sen (3.0%). Notice that an “Evening Doji” formation has also taken shape, with the Stochastic indicator dipping below oversold levels. Combined, these are indicative of a short-term pullback in the making. As such, we believe that it is appropriate to take profit now but will relook at the stock should buying activity remerges closer to the RM1.20 (S1) – RM1.16 (S2) support levels. At present, key resistance levels are RM1.37 (R1) and RM1.45 (R2) further up.

HIBISCS (Not Rated). With the sentiment returning towards the local O&G sector, HIBISCS has also been attracting active trade in recent months. Yesterday, HIBISCS rose to a 12-month high of RM0.345 (up 2.5 sen or 7.8%) for the day on high volume of 92.0m shares. Chartwise, HIBISCS is on a positive trend after the share price broke out of a sideways band between RM0.18-RM0.22 in October. Despite a healthy pullback in November, the share price was quick to resume its prior uptrend with key indicators such as the MACD staging a bullish crossover and RSI on an upwards climb. As such, we expect the share price to remain biased to the upside from here. Any weakness towards RM0.315/RM0.33 (S1) support can be viewed as an opportunity to enter. Immediate resistances to look out for are RM0.35 (R1) and RM0.375 (R2) beyond.

Source: Kenanga Research - 15 Dec 2016