MASTEEL (Not Rated).

• Yesterday’s trading session saw a thematic rally among several steel counters, with MASTEEL gaining 10 sen (13.3%), closing at RM0.850. This was backed by strong trading volumes of roughly 2.6x its usual average.
• Chart-wise, yesterday’s move brought improvements in technical indicators, with the MACD bucking its downtrend to crossabove its Signal line, coupled with positive upticks seen in the RSI and Stochastic Oscillator.
• However, underlying trends of the share still remain negative. The share is currently still below the key SMAs, which are in a “Death Cross” state.
• From here, a breakout of its support-turned-resistance at RM0.940 (R1) and RM1.05 (R2) could be an affirmative bullish turn in its technical picture.
• Conversely, keen investors should watch out for any break below key support levels at RM0.690 (S1) and RM0.470 (S2).

LEONFB (Not Rated)

• LEONFB closed higher at RM 0.760 (+4.8%), whilst forming a bullish “Opening Marubozu” candlestick.
• Underlying trend remains bearish with SMAs in “Death Cross”, although momentum indicators are displaying signals of possible reversal - i.e. RSI rebound from oversold territory and bullish MACD-Signal Line crossover.
• Look out of crucial resistance at a level near RM0.775 (R1), where a decisive break could pave way towards RM0.855 (R2).
• Conversely, RM0.700 (S1) should remain as a strong support in the immediate term.

Source: Kenanga Research - 3 Apr 2018