GENTING (Not Rated). GENTING rose for a third-straight day, with yesterday’s 7.0 sen (0.8%) gain elevating the stock to the highest levels since July at RM8.37. From a charting perspective, the share price has broken above a major resistance at RM8.18 to confirm an “Inverted Head & Shoulders-like” pattern. This signals that the share price has bottomed out following a downtrend that stretched as far back as March last year. The MACD and RSI indicators have both been on a rising trend, which provides added credibility to the trend reversal. From here, we see a fairly clear path towards the July’s high of RM9.00 (R1) before sellers start to take profit. Downside support levels include the abovementioned RM8.18 trigger line (S1), failing which support is located just below at RM8.00 (S2).

SYF (Not Rated). SYF rose 2.5 sen (4.13%) to close at RM0.63 on strong trading volume yesterday, breaking out from an ‘Ascending Triangle’ chart pattern. The bullish convergence of the MACD line is laying a hand on the bullish-bias outlook ahead. Besides, the pilling buying interest on the stock as showcased by the upticks in RSI and Stochastic is expected to lead the stock towards its immediate resistance of RM0.65 (R1) in the immediate term and possibly RM0.68 (R2) next. Nonetheless, we observe that the deep overbought condition faced by SYF (for the first time over the past year) could result in SYF undergoing a healthy breather. In this case, we note that its key support levels are found at RM0.605 (S1) followed by RM0.58 (S2).

Source: Kenanga Research - 13 Jan 2017