PANTECH (Trading Buy; TP: RM0.765, SL: RM0.645). PANTECH’s share price rose 2.5 sen (3.7%) to close at RM0.695 yesterday. Trading volume was explosive, clocking in at 21.2m shares or nine-fold the daily average. Chart-wise, yesterday’s bullish move resulted in a “Ascending Triangle” breakout after the RM0.665 resistance was taken out in a decisive manner. With a positive crossover between the MACD and Signal line also supportive of a move higher, we expect further gains ahead towards resistance levels RM0.72 (R1), RM0.75 (R2) before reaching the “Ascending Triangle” measurement objective of RM0.78. Any near-term weakness towards the RM0.665 (S1) resistance-turned-support may be viewed as an opportunity to buy, while a break below RM0.62 (S2) would be a huge negative.

MIECO (Not Rated). MIECO’s share price climbed 8 sen (7.2%) yesterday to finish at RM1.19 on increased trading volume of 5.0m shares. As a result of the bullish move, the share price has confirmed a “Bullish Flag” pattern, which signalled that the share price is poised kick of the next leg of its rally after spending three weeks in a consolidative pullback. Similarly, the RSI and Stochastic indicators have both hooked upwards to reflect the shift in momentum from bearish to bullish. From here, we expect an eventual move towards RM1.43 based on the “Flagpole” measurement objective. In the meantime, resistance levels to be cognizant of are RM1.21 (R1), RM1.30 (R2) and RM1.40 (R3) where the Fibonacci Extension levels are. Downside support levels are RM1.10 (S1) and RM1.00 (S2).

Source: Kenanga Research - 29 Sept 2017