SALUTE (Not Rated). SALUTE has been consolidating into a ‘Wedge’-like chart pattern over the past two months, with multiple attempts to breach above the RM1.62 level. Yesterday, SALUTE surged 12.0 sen (7.69%) to close at RM1.68, setting a fresh all-time high level. The MACD line has staged a bullish crossover from its Signal line, while RSI and Stochastic have also hooked up to signal expanding buying momentum on the stock. With the convincing technical breakout, the stock could look to gear higher up towards RM1.80 (R1)/RM2.00 (R2) in the mid to long-term. Support levels are now formed at RM1.62 (S1)/RM1.55 (S2).

ALAM (Not Rated). ALAM announced that it had bagged a 2-year IMR job worth RM99.0m recently, leading to a surge in its share price yesterday. The stock rose 2.5 sen (8.77%) to close at RM0.31 on the back of strong trading volume. The positive price action led ALAM to breaching above its 2-month downtrend resistance line. MACD is looking to stage a bullish crossover from its Signal line, while positive uptick by RSI and Stochastic from a relatively low base is suggesting buying interest are resurfacing. Nonetheless, we observe that there are clusters of overhead resistances ahead, notably the RM0.32 (R1)/RM0.37 (R2) area. A ambitious takeout of the aforesaid levels are needed to lead the share price to a new uptrend trajectory. Otherwise, the stock could look to consolidate again within RM0.25-RM0.37. Support levels are currently spotted at RM0.30 (S1)/RM0.25 (S2).

Source: Kenanga Research - 23 Mar 2017