COCOLND (Not Rated). COCOLND surged 8.0 sen (3.9%) yesterday to finish at a fresh 8-month high of RM2.13. On the daily chart, COCOLND spent the most part of last year in a downtrend, before bottoming out in August (RM1.82). A modest recovery ensued, with the chart looking increasingly like a “Rounding Bottom” as a result of yesterday’s upside breakout. At present, the momentum indicators are on a healthy incline, and this tells us that buying interest is creeping up. From here, we expect bias to be on the upside towards RM2.22 (R1) and RM2.30 (R2) next. Any weakness towards the RM2.05 (S1) support can be viewed as a buying opportunity, failing which, more support should be present at the psychological level/ key SMAs at RM2.00 (S2).

SKPRES (Close Position). Recall that we had recommended a Trading Buy call on SKPRES (report dated 22 Sep 2016) after the share price staged a technical breakout from its 14-month downtrend resistance-turned-support level. While the share price had rose c.8% to a high of RM1.44 within a course of one month, the stock had failed to garner follow-through buying interest and consolidated further. Currently, the daily RSI and Stochastic are rather flattish suggesting that the stock could look to consolidate further in the near-term. Besides, as the stock had failed to live up to its previous technical expectation, we opt to close position on the stock and will re-look once a more compelling technical picture arises. Overhead levels are seen at RM1.37 (R1) followed by RM1.44 (R2), while support levels are seen at RM1.30 (S1) and RM1.26 (S2).

Source: Kenanga Research - 24 Jan 2017