BRAHIMS (Not Rated). Yesterday, BRAHIM rose 4.0 sen (4.4%) to close at RM0.955 on the back of strong trading volume, which was a YTD’s high. On the chart, the share price has gapped up to break out from its downtrend resistance line, rebounding from its recent consolidation phase to settle above its 20-day SMA level. The MACD histogram has staged a bullish crossover to imply a positive outlook ahead. Meanwhile, strong uptick in RSI and Stochastic are also suggesting a rise in buying momentum. Nonetheless, we observe that the stock could face immediate headwind at the RM0.96 level (R1) which coincides with its 50- and 200-day SMAs. If the share price manages to breach the aforesaid level, it could look to trend higher towards RM1.00 (R2) and possibly RM1.10 (R3) next. Immediate support is noted at RM0.92 (S1) followed by RM0.885 (S2).

MMCCORP (Not Rated). MMCCORP surged 8.0 sen (+3.8%) to RM2.19 after news emerged that MRT Corp had awarded a RM15.5b contract to MMC Gamuda KVMRT Sdn Bhd for the construction of the MRT Sungai Buloh-Serdang-Putrajaya Line (SSP Line, MRT2). Trading volume was double the 30-day average, with 3.0m shares changing hands. On the daily chart, MMCCORP’s share price has just broken out of its congestion zone to confirm a “Bullish Pennant” formation. This reflects a continuation of its prior uptrend after a brief pause. From here, we expect the share price to chart further gains towards the November high of RM2.31 (R1), before reaching the “Pennant” measurement objective at RM2.48 (R2). Traders may consider buying now, with a stop-loss just below the RM2.05 (S1) support. Further support is located further down at RM1.92.

Source: Kenanga Research - 1 Apr 2016