ANNJOO (Not Rated). Yesterday, ANNJOO surged 14.0 sen (5.74%) to stage a breakout from its resistance-turned-support level of RM2.46/RM2.49 (S1) to close at a fresh all-time high level of RM2.58. In tandem with the strong trading volume, MACD is also poised to stage a bullish crossover above its signal line, indicating positive-bias outlook ahead. Uptick in daily RSI and Stochastic are suggesting possible further upside from here, as buying interest on the stock is heightened. From here, ANNJOO could look to gear further up towards RM2.60 (R1) and possibly RM2.77 (R2) next in the near-to-mid-term. Downside support levels are tied at RM2.46 (S1) followed by RM2.34 (S2).

MPAY (Not Rated). MPAY surged 2.5 sen (11.4%) to finish at a 10-month high of RM0.245 on high trading volume of 24.2m shares. Overall, both its short- and long-term trends are bullish, with the share price firmly traded above all three key SMAs. The share price had previously spent most part of last year in a downtrend, but has since bottomed out in September. Now with the MACD also on a bullish convergent trend, we reckon that MPAY is poised for further gains ahead. From here, expect a further move towards RM0.26 (R1) where the March-April 2016 reaction highs are located. Should the share price manage to overcome the resistance at those levels, we would then set our sights on RM0.30 (R2) next. Downside support levels are RM0.21 (S1) and RM0.185 (S2) further below.

Source: Kenanga Research - 21 Feb 2017