MASTEEL (Not Rated). Yesterday, MASTEEL’s share price surged 9.0 sen (8.0%) to RM1.22 with 7.0m shares changing hands. Earlier in April, the share price broke out of its sideways trend and has had since rallied to as high as RM1.28 before staging a meaningful pullback. Nevertheless, MASTEEL now appears to be resuming its prior uptrend as a result of this week’s bullish move. Similarly, the RSI and Stochastic indicators have hooked upwards to reflect this positive shift in momentum. From here, we expect a swift retest of the RM1.28 (R1) high, before a further move towards RM1.39 (R2) next. Any weakness towards the RM1.14 (S1) support can be viewed as a buying opportunity, although a break below the next support at RM1.06 (S2) would be highly negative.

COMCORP (Not Rated). COMCORP has been trading within a range of RM0.895-RM1.10 over the past month. The share price has attracted strong investors' interest to surge 9.0 sen (9.28%) yesterday, breaking out from its key resistanceturned-support level of RM1.10 (S1) to close at an all-time high level of RM1.06. The primary trend of the underlying is looking positive, as the share price is trading above all its key moving averages. Besides, the MACD is also setting a higher high on its bullish convergence to lend a hand on the bullish-bias outlook, where upside resistance levels are capping the upside at RM1.11 (R1)/RM1.20 (R2). Nonetheless, we observe that a ‘long upper shadow’ candlestick was formed during the intra-day, indicating that there is a presence of selling pressure. Besides, both RSI and Stochastic are reaching their respective overbought levels. Thus, we advocate interested investors to await a breather/pullback towards RM1.01 (S1) before entering the stock, while noting its next support level of RM0.895 (S2)

Source: Kenanga Research - 9 Jun 2017