ARANK (Not Rated). Yesterday, ARANK broke out of its week-long consolidation phase with a 5.0 sen (4.8%) gain to RM1.09. The share price has been on healthy uptrend since Aug 2015, having risen from a low of RM0.40 to a recent high of RM1.11. Currently, ARANK’s chart is still bullish, with the share price firmly above all 3 key SMAs. As a result of yesterday’s bullish move, the share price looks poised to resume its uptrend after a brief pause for breath. Momentum indicators have all hooked to reflect this pick-up in bullish sentiment. Hence, we expect ARANK to retest the recent high of RM1.11 (R1) before moving higher towards RM1.19 (R2) and RM1.24 (R3) next. Downside appears limited, with a confluence of support levels between RM1.00 –RM1.04 (S1), failing which, greater support is expected at RM0.95 (S2).

SHELL (Not Rated). SHELL surged 26.0 sen (10.32%) to close at RM2.78 yesterday after the board of SHELL advised its minority shareholders to reject the takeover offer from Malaysia Hengyuan International Ltd of RM1.92/share. Technical-wise, the stock has staged a technical breakout from a ‘Wedge’ chart pattern on strong trading volume. The MACD line has been expanding upwards above its zeroline while the RSI and Stochastic is currently flirting in bullish territory albeit being in overbought condition, signalling more upside potential in the immediate term. Taking the aforesaid into consideration, we reckon that follow-through trading volume must expand accordingly to maintain the bull momentum. Upside resistance is envisaged at RM2.80 (R1) followed by RM3.10 (R2) further up. Immediate support is seen at RM2.63 (S1), while the lower floor is pegged at RM2.40 (S2).

Source: Kenanga Research - 20 Jan 2017