ATTA (Not Rated). ATTA saw its share price surging for a second day, yesterday alone it gained 13.0 sen (11.1%) to RM1.30 after the company announced FY17 earnings of RM18.6m, reversing the previous year’s net loss of RM2. 4m. Historically it was a sleepy stock and its influx of buying interest only began in February. It share price has since more than doubled from its RM0.62 low on the 17th Feb. Chart-wise, ATTA’s short-to-longer-term trend is positive while the key momentum indicators are in a bullish state. With the share price now at the highest level since 2007, we expect the share price to be upside biased from here. Next up, resistance levels to look out for are RM1.37 (R1) and RM1.46 (R2) while any downside wards RM1.10 (S2) -RM1.23 (S1) may be viewed as a buying opportunity.

PMETAL (Take Profit @ RM2.57). To recap, first recommended a Trading Buy call on PMETAL back in 13-Oct 2016 (share price @ RM1.55), and subsequently revised the target price upwards twice (latest TP is RM2.73). The stock had rallied strongly since then and even surpassed our TP to reach an all-time high level of RM3.00. Nonetheless, the share price had since undergone a technical pullback and has been consolidating over the past month. With the stock likely to consolidate further towards RM2.52 (S1) and possibly RM2.34 (S2) given the bearish convergence of MACD and potential ‘Dead Cross’ formed by the 50-day and 100-day SMA, we opt to take profit on the stock for now to record a commendable gain of 67.4% (inclusive of dividend) while we await a rebound play to re-enter the stock moving forward.

Source: Kenanga Research - 2 Jun 2017