PELIKAN (Trading Buy, TP@RM1.03). After undergoing a correction phase over the past two months since hitting an multi-month high level of RM1.06, PELIKAN has rekindled investors' interest to stage a technical breakout from its multi-month downtrend resistance line. In tandem with the formation of a long white ‘Marubozu’ candlestick and strong trading volume, PELIKAN surged 10.0 sen (12.5%) to close above its short-and-medium term SMAs to close at RM0.90. Resurgence of buying interest on the stock is also reflected by the strong uptick seen by RSI and Stochastic from their respective oversold position. Besides, the bullish crossover set by the MACD histogram is also supportive of the bullish-bias outlook ahead. Should follow-through buying interest carry on over the next few days, the stock could set sights towards RM0.93 (R1) and possibly our target price objective of RM1.03 (3 bids below the RM1.06 (R2) level) in the near-to-mid term. Key support thresholds are capped at RM0.87 (S1) and RM0.80 (S2) further down, while our stop-loss is placed 3 bids below S2 at RM0.77.

SASBADI (Not Rated). SASBADI registered a 7.0 sen (5.04%) gain to close at RM1.46 yesterday on increased trading volume. SASBADI’s share price has staged a rebound play from its key support line of RM1.30/RM1.31 (S1), after consolidating over the past one month. MACD histogram is looking to stage a bullish crossover to reverse from its zero-line, while the healthy up trend seen by RSI and Stochastic are backing the case for a rebound play. On this case, SASBADI cold look to retest its all-time high level of RM1.55 (R1) in the near-term, where a takeout of the aforesaid level would see the stock attempt the RM1.65 (R2) level next. Immediate support lines are located at RM1.40 (S1) and RM1.31 (S2).

Source: Kenanga Research - 21 Dec 2016