SSTEEL (Not Rated). Local steel counters had a strong run earlier on Wednesday on expectations of reduced supply after China imposed capacity curbs. While the initial euphoria appears to have fizzled out in yesterday’s trade, counters such as SSTEEL remain technically bullish with its overall uptrend remaining intact. SSTEEL, in particular, was down 6.0 sen yesterday (3.3%) at RM1.78. However, more importantly, trading volume came in less than half that of the previous day when the share price surged 13.0 sen. At the same time, the 20-day has now completed a “Golden Crossover” with the 50- day SMA. These led us to believe that the current share price weakness is likely to be short-lived, with an eventual move expected towards RM1.95 (R1) and RM2.05 (R2). Support levels likely to see buying-on-weakness are RM1.75 (S1) and RM1.67.

MUIPROP (Not Rated). MUIPROP surged 2.0 sen (6.78%) yesterday to close at its intra-day high of RM0.315 due to eleventh hour accumulation. The movement broke previous 4–month downward consolidation trend while MACD formed an uptick over Signal-line and is reaching Zero-line mark. This uptrend was also accompanied by higher volume with 1.15m shares traded relatively high to SMAVG (20) of 0.34m shares. Further up, some resistance is expected overhead at RM0.325 (R1) although breaking beyond that, the next resistance is located at YTD high of RM0.360 (R2). As for the downside, support levels are RM0.285 (S1) and RM0.240 (S2).

Source: Kenanga Research - 11 Aug 2017