CBIP (Trading Buy, TP: RM2.47). Last month, CBIP broke above a crucial multi-month resistance at RM2.09 (22-Feb) to signal a decisive reversal from its long-term downtrend. With this bullish move, this RM2.09 resistance level has now turned support and this follows the earlier “Golden Crossover” by the 50-day and 100-day SMA. In fact, CBIP managed a further breakout above its February high of RM2.20 yesterday. The share price closed 5.0 sen (2.3%) higher at RM2.24 and appears poised for further gains. From here, expect further gains over the coming months towards RM2.35 (R1) and RM2.50 (R2) next. Immediate support is located at RM2.20 (S1) and RM2.09 (S2). Traders looking to buy into the stock should aim to take profit 3 bids below R2 at RM2.47. At the same time, a stop-loss should also be placed just below S2 at RM2.06.

MITRA (Not Rated). Recently, small cap construction companies garnered investors’ interest after displaying stronger earnings performances as well as the surprise RM1.46b Pan Borneo highway contract win by KIMLUN and ZECON last Wednesday. MITRA has since been under investors’ radar as it rose 7.0 sen (5.93%) to close at RM1.25 on the back of strong trading volume. From a technical standpoint, the share price has staged a technical breakout from its resistance-turned-support level of RM1.22. MACD has conducted a bullish crossover to indicate a bullish outlook forward. This is supported by the rising buying momentum signalled by the upticks in the RSI and Stochastic. Should follow-through buying interest persist riding on the hype surrounding small cap construction players, we view that the share price could look to retest its immediate resistance level of RM1.30 (R1) soon before trending towards RM1.45 (R2) next in the near-term. Immediate support levels, on the other hand, are seen at RM1.22 (S1) followed by RM1.13 (S2).

Source: Kenanga Research - 15 Mar 2016