NTPM (Trading Buy, TP: RM1.13). Consumer goods and paper company, NTPM, has been consolidating over the past one month after reaching a high level of RM1.01, as it managed to find a strong footing at the RM0.90 (S1) level. Yesterday, the share price attracted investors' interest once again to climb 3.0 sen (3.21%) to RM0.965 on the back of strong trading volume. This came in tandem with a reversing MACD from its support trend line, as well as strong uptrend seen in RSI and Stochastic that signaled a buy call on the stock. We reckon that yesterday’s rebound rally from its recent consolidation phase could provide an impetus towards the psychological resistance level of RM1.00 (R1) soon. Should this level be taken out in a decisive manner, further gains are likely to be seen towards its next resistance at RM1.13 (R2) in the near-term. Strict stops are placed 3 bids below the RM0.90 (S1) support level at RM0.885.
FFHB (Trading Buy, TP: RM1.19). With the company set to release a strong set 4Q15 results later this month, furniture maker FFHB has rebounded strongly from its RM0.79 low last week. In the previous quarterly statement, the management had commented that “the Group is optimistic of returning substantially higher set of results in 2015” and is mulling the formulation of a dividend policy to reward shareholders. Yesterday, FFHB’s share price finished at RM0.925, up by 5.0 sen (+5.7%) on increasing trading volume. The share price appears to have bottomed out, while the Stochastic indicator has hooked up from oversold levels to reflect a pick-up in momentum. Hence, we expect the share price to resume its overall uptrend towards RM1.00 (R1), before moving to retest the RM1.22 (R2) high. For this trading strategy, look to take profit at RM1.19 (3 bids below RM1.22 resistance). At the same time, a stop-loss should be set at RM0.775 (3 bids below RM0.79 support).
Source: Kenanga Research - 19 Feb 2016
