· HALEX (Trading Buy, TP @ RM0.60). HALEX recently garnered investors’ attention after it received a rice-supply contract worth RM184.0m from Felda. The share price rose 2.0 sen or 3.74% to close at RM0.555 yesterday on strong buying volume, breaking out from its sideway trading resistance-turned-support level of RM0.515 (S2) to settle above all its SMA levels. MACD indicator is painting a bullish picture while positive buying momentum was showcased by both Stochastic and RSI indicators. Thus, we are issuing a Trading Buy call on HALEX with a target price of RM0.600 (R1), as we anticipate follow-through buying interest to rally the stock on the back of the recent bullish news. A strict cut-loss is set at its immediate support level at RM0.535 (S1).

· PMETAL (Close Position @ RM2.24). Recall that we issued a Trading Buy call on PMETAL as we anticipate a potential technical breakout from its consolidation phase. However, things have not panned out as we initially thought as the earnings outlook is getting more challenging according to a recent statement from company CEO. The share price has continued to trade sideways with the absence of positive catalyst, with the neutral bias showcased by the MACD indicator. Meanwhile, the buying momentum is also lacklustre, judging from Stochastic and RSI indicators with the latter dipping into the oversold territory. Hence, we decided to close our position on PMETAL at RM2.24 for now, pocketing a small gain of 2.8% over a period of more than one month.

Source: Kenanga Research - 20 Nov 2015