PETRONM (Not Rated) PETRONM’s share price surged 50.0 sen (8.7%) yesterday to a closing high of RM6.27 on increased trading volume of 1.3m shares. Earlier in February, the share price gapped up after it posted 4Q16 earnings, which jumped 595% and subsequently rose to an intra-day high of RM6.66 before consolidating downwards. Nevertheless, yesterday’s bullish move has resulted in a consolidation breakout. Key momentum indicators have also spiked upwards to reflect this drastic increase in positive momentum. Hence, we expect the share price to stage a retest of its February high of RM6.66 (R1) fairly soon. Should this level be taken out next, further gains would then be expected towards RM7.00/RM7.02 (R2). Meanwhile, downside appears limited with solid support present at RM5.72 (S1). Failing which, additional support can be found at RM5.30 (S2).

TECFAST (Not Rated) TECFAST has been consolidating over the past week after a prior strong two-week rally. Yesterday, the share price surged 6.5 sen (19.4%) to close at RM0.40 to confirm a bullish ‘Flag’ chart pattern with a long white ‘ Marubozu’ candlestick. The MACD line is poised to form a higher high on the back of strong uptick in RSI and Stochastic, laying a hand on the bullish bias. In tandem with the strong trading volume observed, we view that follow-through buying interest could rally the stock further up towards RM0.40 (R1) and possibly RM0.50 (R2) in the near-to-mid term, based on the flagpole measurement objective. On a side note, we do not discount the possibility of the share price taking a breather soon before resuming its uptrend given the overbought condition displayed by the RSI and Stochastic. That said, we note key support levels are found at RM0.335 (S1) followed by RM0.295 (S2).

Source: Kenanga Research - 29 Mar 2017