DNEX (Not Rated). Strong buying activity in the final hour drove DNEX to a fresh all-time high yesterday. At market close, the share price finished at RM0.465, up by 6.5 sen (16.3%) with 121.1m shares changing hands. Chart-wise, DNEX’s overall trend is positive, with the key SMAs in a “Golden Crossover” and the share price now at fresh high. With yesterday’s bullish move, the share price has now broken out of its recent consolidation phase to signal a resumption of its prior uptrend. Concurrently, the MACD has also triggered a Signal line crossover, while RSI and Stochastic indicators have hooked up to reflect a rapid increase in bullish momentum. From here, we expect further gains ahead towards RM0.50 (R1) and RM0.535 (R2) next. Downside support should be present at last month’s high of RM0.45 (S1), failing which more support would emerge at RM0.40 (S2) below.

VIS (Take Profit). To recap, we previously recommended a trading buy call on VIS (report dated 14-Feb-17) after the share price staged a technical breakout from its ‘Ascending Triangle’ chart pattern. Since then, the share price had trended up gradually and even surpassed our initial target price objective of RM0.77 recently. Nonetheless, VIS has formed a black candlestick post the formation of a ‘Doji’ candlestick yesterday, on the back of regressing overbought RSI and Stochastic indicators. With the technical picture hinting possibility of the share price taking a breather to neutralise its overbought condition soon, we opt to lock in our profit for now but will be on the look-out for a compelling re-entry.

Source: Kenanga Research - 6 Apr 2017