· COMFORT (Trading Buy, TP: RM0.875). Yesterday, COMFORT rose 2.5 sen or 3.25% to settle at RM0.795 on strong buying volume following the pick-up in interest on rubber gloves stocks. Technically, the stock was observed breaking out from a ‘Descending Triangle’ chart pattern, suggesting bullish outlook ahead. Indicators including Stochastic and RSI are also showing positive bullish buying momentum. Thus, we are issuing a ‘Trading BUY’ call on COMFORT with Target Price envisaged at RM 0.875, based on our measurement objective while a strict stoploss is set at RM0.75.

· RUBEREX (Not-rated). RUBEREX had broken out of its trend channel resistance at yesterday’s closing price of RM0.805. In tandem with the increasing trading volume, the underlying outlook remains positive from here as the share price still trades above all its key SMAs. Besides, the uptick shown in Stochastic and RSI are suggesting that buying momentum is rising. Thus, we reckon that the share price could potentially ride on the recent strengthening of the USD to rally towards RM0.80 (R1) and possibly RM0.85 (R2) next. 

Source: Kenanga Research - 22 Oct 2015