LATITUD (Not Rated). Furniture maker LATITUD saw its share price surging 20.0 sen (4.0%) yesterday to a closing high of RM5.14. This came amid a stronger USD (RM4.50) which drew buying interest towards exporters. On the daily chart, LATITUD’s share price has broken out of a long-term downtrend channel. Coupled with the “Bullish Divergent” signal from the MACD indicator, we reckon that LATITUD had bottomed out and is now poised for further gains ahead. From here, we expect LATITUD to climb to the RM5.44 (R1) resistance, before reaching the channel measurement objective of RM5.76 (R2). Downside appears limited at the RM5.00 (S1) resistance-turned-support, failing which, the next line of defense should be present at RM4.84 (S2).

SOP (Not Rated). SOP surged 9.0 sen (2.43%) to close at RM3.79 yesterday, staging a rebound play from its recent consolidation phase. Yesterday’s price action saw the share price closing above all its key SMA trend lines (20-, 50- and 100- day). In tandem with that, the positive hook-up as depicted by the RSI and Stochastic are indicating improved buying interest despite venturing close to the overbought zone. The MACD histogram is also looking to stage a bullish crossover above the zero-line to lend a hand on the positive-bias outlook for the immediate term. From here, SOP could look to gear further up towards RM3.88 (R1) before attempting RM4.12 (R2) in the near-to-midterm. Downside supports are seen at RM3.61 (S1) followed by RM3.38 (S2).

Source: Kenanga Research - 5 Jan 2017