SCIENTX (Trading Buy, TP: RM13.00). SCIENTX has been consolidating to form an ‘Ascending Triangle’ chart pattern for the past few months after reaching a high level of RM11.28. Over the past two days, the share price has garnered record high levels of trading volume and finally managed to stage a breakout from its resistance-turned-support level of RM11.29 (S1) by surging 30.0 sen (+2.67%) to close at RM11.54. The underlying outlook is currently very positive as the share price trades above all its up trending SMA. MACD has conducted a bullish crossover above its zero-line with the RSI hooking up strongly. The surge in buying interest recently could possibly rally the share price towards its immediate resistance of RM12.00 (R1) and possibly our measurement objective of RM13.00 (R2) next. Protective stop-loss is placed 3 bids below its psychological support level of RM11.00 at RM10.94. Immediate support is seen at RM11.28 (S1) followed by RM10.20 (S2) next.

KTC (Not Rated). KTC has been consolidating since the start of year 2016 after reaching a high level of RM0.475. Yesterday, the share price has started to attract heavy investors interest again, rallying 3.5 sen (+10.29%) to close at RM0.375. The MACD histogram has staged a bullish crossover on the back of uptick seen in both RSI and Stochastic from their oversold position. The healthy momentum indicators imply that buying interest are piling up, portraying a bullish outlook ahead. From here, we reckon that the share price could look to continue on its strong rebound play to trend further towards its immediate resistance level of RM0.39 (R1) and possibly towards RM0.43 (R2) next in the near-term. Immediate support is seen at RM0.36 (S1) followed by RM0.34 (S2).

Source: Kenanga Research - 18 Mar 2016