MIKROMB (Not Rated). MIKROMB surged to a fresh high yesterday, with a 3.5 sen gain (5.8%) to RM0.64. Chart-wise, MIKROMB’s short- and long-term trends are positive with the key SMAs in a “Golden Crossover” formation. Trading volume has also been on the rise over the past few months, with yesterday’s breakout being further accompanied by an equally explosive volume of 10.0m shares. Although the RSI and Stochastic indicators have entered into overbought territory, balance of evidence suggests that the rally still has legs. From here, we reckon that the share price is poised to move towards the next resistances at RM0.68 (R1) and RM0.725 (R2) next. Any weakness towards the RM0.60 (S1) breakout point would offer an opportunity to enter, although a move below the RM0.56 (S2) support would be highly negative for the stock.

AEMULUS (Not Rated). AEMULUS surged 4.0 sen (10.81%) to stage a breakout from its consolidation zone, closing at RM0.41 yesterday. Indicator signs are looking bullish, with the MACD line staging a crossover above its Signal line on the back of strong upticks displayed by daily RSI and Stochastic (from their oversold levels). Coupled with the strong trading volume, we reckon that AEMULUS could look to gear higher up towards RM0.425 (R1) and possibly RM0.455 (R2) in the near term. Key support levels are seen at RM0.375 (S1)/RM0.325 (S2).

Source: Kenanga Research - 5 Apr 2017