· ECS (Stopped Out @ RM1.54). ECS has been trading sideways since staging a breakout from its ‘Flag’ chart pattern, where we issued a Trading Buy call on the stock on 6-Nov. The share price has failed to perform according to our expectation, as it saw strong selling pressure to gap down 4.0 sen (2.6%) yesterday as small caps suffered selling pressure as investors cashed out on growing market uncertainty. The technical picture is also depicting a very bearish picture, with the MACD already staging a bearish crossover, while both RSI and Stochastic are showing strong downticks. With that, we are forced to stop out on the stock as the share price has already surpassed our stop-loss level of RM1.58.

· HALEX (Stopped Out @ RM0.535). Recall that we had earlier issued a trading buy call on this counter (RM0.56 @ 20-Nov), after it secured a rice-supply contract worth RM184.0m from Felda. The share price then attracted investors’ interest for a couple of days, but failed to break out from its multi-month downtrend resistance as it staged a bearish reversal. The technical picture has turned bearish as depicted by the southtrending RSI and Stochastic, while it broke below our stop-loss level of RM0.535 yesterday on the back of poor market sentiment. As a result, we are stopping out the counter at RM0.535 but will keep a close watch on it once its technical picture turns attractive again. 

Source: Kenanga Research - 26 Nov -2015