FARMBES (Not Rated). FARMBES has been consolidating over the past few weeks to neutralise its overbought situation after closing on a high level of RM0.905 back in 5 February 2015. The share price has since found some buying support near the RM0.72 (S1) level, as it again attracted strong investors interest to gain 6.5 sen (+8.72%) to close above all its SMA levels at RM0.81. Overall technical picture looks positive from here, as both RSI and Stochastic are trending up healthily with the latter rebounding from its oversold level. We reckon that the share price could possibly climb higher on follow-through buying momentum, trending towards RM0.85 (R1) before retesting its previous high level of RM0.905 (R2) in the near-term. On a flip side, we do not discount that the positive technical picture could be hindered by the rather poor quarterly results reported last night. Hence, this could induce profit-taking activities by investors whom look to take advantage of the strong rally yesterday. Immediate supports are seen at RM0.72 (S1) and RM0.60 (S2).

HEVEA (Not Rated). Yesterday, HEVEA released its FY15 report card, which showed a 144.6% jump in earnings. Earlier last week, we highlighted HEVEA at RM1.27 when the share price was in the midst of staging a technical rebound from its horizontal support level (See report dated 17-Feb). The share price had since performed well, having risen to as high as RM1.51 (+18.9%) before encountering some profit taking activities at the 50-day SMA. Yesterday, the share price closed at RM1.40, down by 2.0 sen (-1.4%) for the day. Trading volume has dissipated over the past few days while the momentum indicators have begun to flatten out. Hence, we think it best that traders look to take profit on any strength between current levels and the overhead resistance at RM1.51 (R1). For this stock, further resistance is located at RM1.79 (R2) and downside support levels are RM1.15 (S1) and RM1.00 (S2).

Source: Kenanga Research - 25 Feb 2016