GASMSIA (Not Rated). Yesterday, GASMSIA gained 7.0 sen (2.6%) to close at RM2.78, above its 20-day moving average of RM2.72. This was accompanied by higher-than-average volume, with 520.4k shares exchanging hands, as compared to the 30-day average of 410.4k shares. Notably, yesterday’s move marks as a breakout from a prior three-month consolidation, confirming a ‘Falling Wedges’ pattern to signal a potential reversal. This is also accompanied by upticks in key-indicators, reflecting gains in momentum. All-in, we believe the balance of evidence could be supportive of a positively biased outlook. From here, we expect the share to retest its immediate resistance of RM2.83 (R1), with a higher resistance placed at RM3.00 (R2). Support levels can be identified at RM2.65-RM2.70 (S1), with a stronger support further lower at key psychological level of RM2.60 (S2).

PELIKAN (Not Rated). Yesterday, PELIKAN’s share price rose 4.0 sen (4.8%) to an intraday high of RM0.880, forming a white ‘Marubozu’ candlestick on increased volume of 101.0k shares traded. The share price was in a downward trend for the past 5 months before breaking out yesterday, thus potentially signalling a trend reversal. At the same time, the MACD had also crossed over its Signal and Zero lines to reflect a pickup in momentum. At current levels, the share is in the midst of testing its RM0.880 (R1), with a decisive break beyond potentially clearing a path for the share to trend higher towards RM0.910 (R2). Meanwhile, downside support levels are likely at RM0.850 (S1) and RM0.810 (S2) further below.

Source: Kenanga Research - 6 Dec 2017