IQGROUP (Trading Buy, TP: RM2.85, SL: RM2.49). Yesterday, IQGROUP’s share price rose 7.0 sen (2.8%) to RM2.61. The share price has been on a healthy uptrend since July last year, where it climbed from a low of RM1.82 (18 July) to as high as RM2.68 just last month (15 Dec). With yesterday’s bullish move, IQGROUP has now broken out of its 2-week long consolidation phase to signal a resumption of its prior uptrend. RSI remain on a rising trend and this further supports the bullish outlook. From here, we expect IQGROUP to retest the RM2.68 (R1) high. Should this resistance level is taken out next, IQGROUP would then have a clear path towards RM2.88 (R2) next. Immediate support is solid at RM2.53 (S1), failing which the next key support is just below at RM2.40 (S2).

ANNJOO (Not Rated). Steel player, ANNJOO, surged 17.0 sen (7.76%) to close at RM2.36 on the back of strong trading volume yesterday to perform an uptrend resumption maneuver after taking a two-month long breather. With the MACD indicator conducting a bullish convergence away from its zero-line, ANNJOO could be poised for further gains ahead. Upside resistance are envisaged at RM2.46 (R1) followed by RM2.61 (R2) next. Nonetheless, we observe that both the RSI and Stochastic are currently in their respective overbought zone. Hence, we do not discount the possibility of a healthy pullback after the sharp price action yesterday to neutralise its overbought condition. Any retracement towards the RM2.23 (S1)/RM2.18 level would offer a good opportunity to accumulate the stock. Meanwhile, the next support level is noted at RM1.97 (S2).

Source: Kenanga Research - 6 Jan 2017