HEVEA (Not Rated). An overnight gain in the USD (RM4.46) attracted buying interest in HEVEA, which rose 5.0 sen (3.4%) yesterday to finish at the day’s high of RM1.52. Chart-wise, HEVEA has been on a steady uptrend since August. More recently, the share price staged a healthy pullback towards the trend line support at RM1.39. Nevertheless, HEVEA is now poised to resume its bullish move. Key indicators are also back on the incline. Hence, we expect follow-through buying to continue with a likely retest of the recent highs of RM1.57/RM1.58 (R1) further up. Should these resistance levels be taken out next, we can then set our sights on RM1.70 (R2). Immediate support levels include RM1.42 (S1) and RM1.33 (S2) below.

PRESTAR (Not Rated). PRESTAR surged for a second straight day, registering a 5.5 sen (+7.0%) gain yesterday to RM0.845. Overall, PRESTAR has been on a positive trend since the start of the year, and is currently firmly above all 3 key SMAs. With the two-day gain, PRESTAR’s share price has broken out of a 2-week sideways consolidation phase. In fact, a “Pennant-like” formation has taken shape on the daily chart to indicate a resumption of its prior uptrend. From here, we expect further gains ahead towards RM0.87 (R1) and RM0.915 (R2), before reaching the “Pennant” measurement objective of RM0.97 (R3). Any return to the RM0.77 (S1) support can be viewed as an opportunity to enter, while a further break below RM0.715 (S2) would be highly negative for the stock.

Source: Kenanga Research - 16 Dec 2016