BENALEC (Not Rated). BENALEC surged 4 sen (+9.6%) yesterday to finish at the day’s high of RM0.455. Consequently, a bullish “Marubozu” candlestick has taken shape on the daily chart – reflecting the sustained buying throughout yesterday’s trade. From a charting perspective, BENALEC’s share price appears to have bottomed out after being on a year-long downtrend. The key momentum indicators have also been sporting “Bullish Convergent” signs since August, and this signals a gradual transition from bearish sentiment to bullish sentiment. From here, we expect BENALEC to be biased to the upside towards RM0.46 (R1) and RM0.49 (R2) next. Downside support is RM0.40 (S1), although a break below would raise some red flags with the next support located further below at RM0.36 (S2).

PRIVA (Not Rated). PRIVA’s share price rose 1 sen (+6.1%) to RM0.175 with 3.3m shares changing hands. Late last month, the share price broke out of a long term downtrend at RM0.16, and commenced a strong run-up to a high of RM0.205 before topping out. The share price subsequently pulled back to a low of RM0.165 earlier this week. Nevertheless, renewed buying interest re-emerged yesterday, evidenced by the increase rising share price and trading volume. The RSI and Stochastic indicators have also hooked upwards to signal the start of an upcycle. From here, we expect PRIVA to stage a retest of the January RM0.20/RM0.205 (R1) highs. Should these levels be taken out in the near term, PRIVA would then have a clear path towards RM0.22 (R2) next. Immediate support is located at RM0.16 (S1), failing which, further support should be present at RM0.15 (S2).

Source: Kenanga Research - 26 Jan 2017