· MPAY (Trading Buy, TP: RM0.320). MPAY has been undergoing its consolidation phase ever since staging a rebound from its August low level. Yesterday, the share price had climbed 1 sen (+3.57%) on the back of strong trading volume. The underlying outlook is positive as the share price is currently trading above its 20-day SMA level. In tandem with that, the MACD has also staged a ‘Golden Cross’ to lay a hand on the bullish outlook. If follow through buying interest persist, we reckon that the share price could potentially rally towards its July high level of RM0.320 (R1) in the near-term. Meanwhile, immediate support is pegged at RM0.275 (S1) followed by RM0.260 (S2) level.

· HEVEA (Not Rated). Recall that last Friday, we highlighted HEVEA as short term scalping idea (Report dated 4th Dec @ RM1.52) when the share price departed from its rising channel support. Within a week, the share price had risen to a high of RM1.62 (+6.6%) before closing just off-best at RM1.61 yesterday. While the overall uptrend remains intact, the share price is already nearing the channel resistance at RM1.65 (R1) where profit taking activities are likely to emerge. This is particularly so, with the 14-day RSI already borderline overbought at 73.2. Hence, traders who had previously followed our report may look to take profit between current levels – RM1.65. Immediate resistance levels are RM1.65 (R1) and RM1.78 (R2), while downside support levels are RM1.55 (S1) and RM1.43 (S2).

Source: Kenanga Research - 11 Dec 2015