INSAS (Not Rated). INSAS saw its share price climbing 3.0 sen (3.7%) yesterday to the day’s high of RM0.845 on high trading volume of 5.5m. Chart-wise, the share price has been on a rising trend since November, having gained from a low of RM0.675 to as high as RM0.885 last month. The share price had since pulled back towards the 50-day SMA at RM0.775, and now appears to be poised for the next leg of its climb. Note that the MACD is converging with the Signal line, while the RSI has also crossed into bullish territory this week to reflect a pick-up in bullish momentum. From here, we expect INSAS to be biased to the upside, with a potential to retest its recent high of RM0.885 (R1). Should this level be taken out, further gains would then be eyed towards RM0.935 (R2) next. Downside support levels are seen at RM0.805 (S1) and RM0.775 (S2), below which traders may consider placing stops.

ELSOFT (Not Rated). Yesterday, ELSOFT rose 5.0 sen (3.01%) to close at RM1.71 on strong trading volume. The share price has staged a breakout from its consolidation zone to close above all its key SMA trend lines. MACD line is looking to stage a bullish crossover above its Signal line on the back of positive trending of RSI and Stochastic. With the positive-bias momentum indicators displayed, ELSOFT could set sights at RM1.75 (R1) and possibly RM1.85 (R2) in the near-term. Nonetheless, interested investors should take note of its slightly overbought RSI and Stochastic, where a healthy pullback could be on the cards in this case. Downside supports are seen at RM1.68 (S1) and followed by RM1.60 (S2).

Source: Kenanga Research - 10 Mar 2017