GESHEN (Not Rated). Yesterday, GESHEN rose a spectacular 17.0 sen (7.5%) to close at RM2.43, on the back of increased trading volume with 882k shares exchanging hands, above its 20-day average of 324k shares. From a technical perspective, yesterday’s move marks as a breakout from a long sideways consolidation. More importantly, it took out a previous resistance of RM2.27, in which the share retested trice within the month, and this may potentially signal a continuation of an underlying long uptrend since May last year. Likewise, positive showings from key-indicators may also seem to suggest that an increasing trading momentum may be at play, with the MACD continuing its trend above the Signal and zero lines. From here, expect some immediate overhead resistance at RM2.47 (R1), with another resistance higher up at RM2.69 (R2). Conversely, downside support can be found at RM2.14 (S1), and at RM2.05 (S2) further down.

HAIO (Not Rated). HAIO saw its trading volume doubled the daily average to 557k shares yesterday, with its share price gaining 10.0 sen (2.4%) to RM4.32 for the day. Chart-wise, the share price has been trading in an upward channel for the past 5 months. Yesterday’s movement resulted in an uptick on the key-indicators with MACD crossing above both the Signal and Zero lines mark. These signalled that the upward trend still has momentum. From here, the share price is expected to punch through the previous closing all-time high of RM4.37 (R1) before a further move towards RM4.93 (R2). A strong support level can be found at key psychological level of RM4.00 (S1) with any weakness towards this level perceived as an opportunity to collect on weakness. However, a decisive break below RM3.83 (S2) would be highly negative.

Source: Kenanga Research - 23 Aug 2017