OMESTI (Not Rated)

• OMESTI rose 5.0 sen (+8.8%) to close at RM0.620 yesterday.
• Yesterday’s bullish candlestick closed higher on the back of stronger-than-average trading volume. Furthermore, there looks to be a forming “Golden Cross” as the 20-day SMA attempts to cross above the 50-day and 100-day SMAs, which signals strong potential for a continuation of the rally.
• Coupled with an uptick in key momentum indicators, we believe that the stock may be poised for more upside.
• Resistance levels can be seen at RM0.700 (R1) and RM0.865 (R2).
• Conversely, downside supports can be identified at RM0.550 (S1) and RM0.445 (S2).

QES (Not Rated)

• Yesterday, QES gained 1.0 sen (+6.7%) to end at RM0.160.
• Chart-wise, the stock has been on an uptrend since mid-March this year, which sees the stock currently trading above its 50- day and 100-day SMAs.
• Given the bullish MACD signal, we believe that there may be more upside.
• From here, overhead resistance is seen at RM0.185 (R1) and RM0.225 (R2).
• Conversely, support levels can be identified at RM0.100 (S1) and RM0.080 (S2).

Source: Kenanga Research - 29 Apr 2020