ELSOFT (Not Rated). Buyers dominated ELSOFT’s trading session yesterday, with the share gaining 20 sen (7.7%) to close at intraday high of RM2.80, forming a white “Marubozu” candlestick. Yesterday’s move countered the shorter-term movement of the stock as it took a week-long downward consolidation previously. With that being said, the uptrend of the stock still remains intact as staged by the higher peaks and troughs. Likewise, key-indicators have also responded with slight up-ticks following yesterday’s move. From here, we expect the share to trend towards its overhead resistance at RM2.95 (R1), while a decisive break beyond would see a next resistance higher up at RM3.32 (R2). An immediate support can be found at RM2.58 (S1), with another support further lower at RM2.34 (S2).

CCK (Not Rated). Yesterday, CCK gained 6.0 sen (5.94%) to close at an all-time high of RM1.07, forming a white “Marubozu” candlestick as the bull dominated the day. Supported by high volume of 5.2m shares traded, the movement resulted in a breakout above its May highs of RM1.05. As for the indicators, the MACD remained above both zero-line mark and signal line shows that the momentum is still strong. From here, it is believed that the share price to be positively biased towards RM1.100 (R1) and RM1.155 (R2). Any weakness towards RM1.000 (S1) could potentially be a buying opportunity. However, slip below RM0.945 (S2) will break the trend channel, could be a huge negative.

Source: Kenanga Research - 15 Aug 2017