OLDTOWN (Close Position). Back in 18 December 2015, we issued a trading buy call on OLDTOWN after the share price displayed a technical breakout from its channel resistance level on the back of strong trading volume. Nonetheless, the share price has failed to live up to our expectations and consolidated instead after staging a short-lived rally. MACD histogram is currently flattening out below the zero line, while both RSI and Stochastic are experiencing a down-tick to imply waning buying momentum. Taking into consideration the aforesaid lacklustre technical picture, we decided to close our position on the stock and will re-look once a convincing buy signal emerges again.

AEONCR (Not Rated). Yesterday, AEONCR rallied 44.0 sen (3.7%) to close at RM12.38 on increased trading volume. Until yesterday, AEONCR’s share price had been trading within a long-term downtrend. Nevertheless, the share price has finally broken above the crucial 100-day SMA in a decisive manner – a feat last recorded a year ago (Apr 2015) which triggered a subsequent 16% rally within a month. Combined with the MACD and RSI which have both hooked upwards, its technical picture has improved significantly. From here, expect bullish momentum to continue towards overhead resistance levels at RM13.00 (R1) and RM13.68 (R2). Meanwhile, downside support is located at RM11.88 (S1) and RM11.44 (S2).

Source: Kenanga Research - 22 Mar 2016