PRESTAR (Trading Buy; TP @ RM1.05, SL @ RM0.87). After retracing from its multi-year high level of RM1.05, PRESTAR has found a strong support level at RM0.85 (S2) to rebound 8.5 sen (9.88%) to close at RM0.945. Uptick depicted by RSI and Stochastic, especially as the reversal play by the Stochastic from its oversold position suggests potential further upside from here. Besides, the strong trading volume is indicating strong conviction of the bulls in play. Taking the above into consideration, we reckon that PRESTAR could offer a good short-term trading play as we view that follow-through buying from its strong rebound play could see PRESTAR gear higher up towards RM1.00 (R1) and possibly our target price objective (multi-year high level) of RM1.05 (R2) in the near-term. Key support levels to note are RM0.90 (S1) and RM0.85 (S2), where our protective stop-loss level is placed at RM0.87 (3 bids below the S1 level).

AXIATA (Not Rated). Yesterday, AXIATA finished up 12.0 sen (2.5%) at RM4.84. Its overall technical outlook is increasingly positive, with the share price in the midst of a healthy recovery after a breakout of its medium-longer term downtrend in December. At the same time, the share price has been trading within a short-term uptrend channel, which now looks poised for further gains after a brief consolidation phase. With the MACD now signalling a pick-up in buying momentum, AXIATA’s share price could potentially climb towards the RM5.00 (R1) psychological resistance, before reaching RM5.27 (R2) level where the channel resistance converges with the 61.8% Fibonacci retracement level. Downside appears limited, with a solid level of support at RM4.63 (S1), failing which, more support is seen at RM4.50 (S2).

Source: Kenanga Research - 25 Jan 2017