VIS (Not Rated). VIS saw its share price surging 10.5 sen (11.6%) yesterday to RM1.01 after the company announced its 1H17 earnings which jumped to RM2.9m (2H16: RM0.2m). From a charting perspective, the share price has been on a healthy uptrend since November last year, having rallied five-fold from RM0.215 to an intra-day high of RM1.10 recently. With yesterday’s strong move, the share price has now broken above its resistance line, and is now poised to retest its RM1.10 (R1) high. Once this is taken out, VIS would then have a clear path towards RM1.32 (R2) further up. Immediate support levels to buy on weakness are RM0.89 (S1) although a break below would be highly negative.

IRIS (Not Rated). IRIS saw its share price climb 2.0 sen (13.3%) yesterday to close at RM0.17 after announcing a fixed price of RM0.14/share for its 10% proposed private placement. Chart-wise, yesterday’s move signals a decisive breakout beyond the RM0.15 resistance level, which it had continuously tested over the past few days. Likewise, some key indicators have also turned positive following yesterday’s move, with the MACD crossing above its Signal line, while the RSI had also experienced an uptick. From here, we expect some resistances at current levels of RM0.17 (R1), with another resistance higher up at RM0.19 (R2). Breaking beyond these levels will see a stronger resistance at RM0.21 (R3). Conversely, we also expect to see strong supports at the RM0.145-0.15 (S1) levels, with another support at RM0.13 (S2) further below.

Source: Kenanga Research - 23 Jun 2017