PERMAJU (Not Rated). Yesterday, PERMAJU’s share price shot up 4.0 sen (20.0%) to RM0.24 in a sudden burst of trading activity after the lunch break. The share price has been choppy since December last year, having traded within the RM0.115-RM0.29 range over the past year. More importantly, yesterday’s bullish move signaled a resistance breakout at RM0.23. Read in tandem with the MACD-Signal line crossover and the RSI uptick, the technical picture suggests that PERMAJU is poised for a move higher over the coming days. Immediate resistance levels to look out for include RM0.25 (R1), and the aforementioned RM0.29 (R2) level where the April high is located. Downside support levels are RM0.22 (S1) and RM0.20 (S2).

SIGN (Not Rated). SIGN closed 3.0 sen (3.4%) higher at RM0.91. The movement potentially signaled that the share price may have bottomed out after a 4-month downtrend. Yesterday's spike in price was also accompanied by stronger trading volume of 0.66m shares compared to SMAVG (20) of 0.15m shares. Indicator-wise, the MACD line is trending higher toward the Zero-line which depicts the transition between negative momentum to positive. Strong resistance is expected further up at RM0.93 (R1). Nevertheless, should this crucial level be taken out decisively, we see the potential for a further gain towards RM1.00 (R2) higher up. Conversely, failure to take out its immediate (R1) resistance will lead the share trending towards support levels found at RM0.85 (S1), with lower support at RM0.80 (S2).

Source: Kenanga Research - 30 Aug 2017