SKPETRO (Not Rated). SKPETRO rose to a fresh 10-month high of RM1.93 – before finishing the day off-best at RM1.92 - up by 4.0 sen (2.1%) at market close. Chart-wise, the share price has been on a rising trend since December, having gained 59.0 sen from its RM1.33 reaction low. Overall, SKPRETRO’s technical outlook is bullish over the short and long-term trend. The MACD and RSI have also been on a mild incline, and these indicate that the momentum is healthy. As a result of yesterday’s bullish move, the share price has broken out of the past week’s consolidation phase and is now poised for further gains in the near term. From here, we expect a steady climb towards the next resistance at RM1.96/2.00 (R1). Should these levels be taken out next, further gains would then be expected towards RM2.17 (R2). Downside support levels are seen at RM1.88 (S1) and RM 1.75 (S2) further down.

LSTEEL (Not Rated). LSTEEL broke out of a three-month sideways trend yesterday, after the share price surged 5.0 sen (11.5%) to finish at RM0.485. Trading volume also rose for a fifth straight day, with 1.4m shares changing hands. On the daily chart, a “Rounding Bottomlike” pattern appears to be taking shape. This indicates that sentiment is gradually transitioning from bearish to bullish. Similarly, the MACD and RSI indicators have also broken out to echo this shift in sentiment. From here, expect LSTEEL’s share price to be positively biased towards resistances at RM0.50 (R1) and RM0.56 (R2). Downside support is now located at the RM0.445 (S1) resistance-turned-support. Failing which, further support is located just below at RM0.40 (S2).

Source: Kenanga Research - 23 Feb 2017