VS (Not Rated). VS’s share price climbed to the highest level in more than a year, on trading volume which was four-fold the daily average at 21.9m. At the market close, the share price ended 7.0 sen (4.4%) higher at RM1.67. Chart-wise, the share price has been on a rising trend since it broke out of the RM1.48 major resistance in January. The share price subsequently rose to a high of RM1.65 before consolidating sideways. Nevertheless, yesterday’s bullish move resulted in a breakout of this consolidation zone to signal a resumption of its prior run. At the same time, the MACD reflects this shift in momentum with a crossover above its Signal-line. Hence, traders may expect the share price to chart further gains ahead towards RM1.70 (R1) and RM1.82 (R2). Support is envisaged at the RM1.61 (S1) breakout point, with further support located at RM1.53 (S2).

ARMADA (Not Rated). ARMADA rose 3.5 sen (4.93%) to close at RM0.745 on increasing volume yesterday, staging a reversal play from its recent consolidation phase. The underlying outlook is positively-poised, supported by all its key SMA trend lines. In tandem with the positive price action yesterday, daily RSI and Stochastic have also shown upticks to indicate improved buying momentum on the stock. Should follow-through buying persist, ARMADA could look to gear higher up to retest its previous high level of RM0.79 (R1) and possibly RM0.83 (R2) next. Key support levels are observed at RM0.71 (S1) followed by RM0.665 (S2).

Source: Kenanga Research - 8 Mar 2017