FLBHD (TB, TP: RM2.02). Yesterday, the share price rose to break out from its multi-month resistance level of RM1.64 to close at its all-time high of RM1.70, backed by strong trading volume. A “Rounding Bottom” chart pattern was formed as the share price closed above all of its SMA levels. Indicator-wise, MACD is lending a hand to the bullish bias with its bullish divergence. While both Stochastic and RSI indicator are also showing signs of strong buying momentum, the overbought situation shows that there could be slight consolidation towards its resistance-turnedsupport level of RM1.64 (S1) in the near-term. In view of the rising interest shown in the stock, we reckon that the share price could ride on its bullish momentum to rally towards RM1.87 (R2) in the near-term. Conservative investors could seek to enter at the stock at the RM1.64 level (S1).

SKPRES (Take Profit @ RM1.45) yesterday inched down 2.0 sen to close at RM1.39, as it consolidated further since reaching a high of RM1.53. To recall, we raised our TP to RM1.60 at 15 July. However, prices were down due to profit- taking activities by investors recently after a strong rally over the past few months. Chart-wise, key technical indicators such as Stochastic and RSI are turning south showcasing increased selling pressure. Thus, we decided to take profit on the stock to lock in our previous gain of 7.4% as the share price has triggered our revised stop-loss of RM1.45.

MUDA (NR) has been trading in a downtrend for the past 3.5 months after it hit the recent high of RM1.95. Currently, the share price has reversed from its recent low of RM1.20 (S1) and surpassed both 20 and 50 day SMAs. Meanwhile, daily trading volume is increasing and coupled with positive readings from key momentum indicators, this suggested that buying momentum is piling up. Thus, should the buying momentum persist, the share price could surge towards RM1.52 (R1) and RM1.62 (R2) next, while the immediate strong support level is set at RM1.20 (S1).

Source: Kenanga Research - 24 Jul 2015