APPASIA (Not Rated). APPASIA’ share price surged to the highest level in two years, with a 4.0 sen gain (11.4%) to RM0.39. Trading volume was high, at 17.5m for the day. In August last year, APPASIA broke out of its downtrend at RM0.15, and commenced a strong rally to a recent high of RM0.37 in December. The share price had since been on a sideways consolidation phase. However, with yesterday’s consolidation break-out, the share price now looks set to resume its prior uptrend, as evidenced by the MACD and RSI upwards hook. From here, we expect follow-through momentum to drive the share price higher, and expect a fairly clear path towards RM0.42 (R1) next. Further up, the next resistance is located at RM0.48 (R2). Downside support levels include RM0.35 (S1) where investors may buy-on-weakness, failing which, RM0.325 (S2) should present a more solid base.

MICROLN (Not Rated). MICROLN’s share price rose for a second-day yesterday after the company painted an optimistic outlook in its 3Q17 report card earlier in the week. At market close, the share price was up 6.0 sen (5.8%) yesterday to finish at RM1.09. Chart-wise, MICROLN’s share price has been on a sustained decline since it topped out at RM1.77 in July last year. Nevertheless, the share price has seemed to have bottomed out recently, as seen by the higher lows and bullish divergent MACD these past few weeks. We reckon that the share price is now showing signs of a recovery, and view this as a chance to bargain hunt. Immediate resistance levels to look out for are RM1.20 (R1) and RM1.38 (R2) while downside support levels are RM1.00 (S1) and RM0.95 (S2).

Source: Kenanga Research - 24 Feb 2017