IBHD (Not Rated). IBHD has garnered investors interest again after the group recently announced that DoubleTree by Hilton would be part of i-City development in Shah Alam with its hotel to open its door to guests in 2018. IBHD’s share price surged 3.5 sen (6.9%) to close at RM0.54 on the back of stronger volume yesterday. Technical-wise, the stock has broken out from its ‘Pennant’ chart pattern resistance to settle above key SMA levels. In fact, we also observed that the stock could be poised to trend on a ‘Rounding Bottom’ chart pattern. RSI indicator has also hooked up strongly to reflect the immense buying momentum, supportive of the bullish outlook. We reckon that the share price could look to ride on the bullish momentum towards RM0.55 (R1) and possibly RM0.575 (R2) next. Downside support could be seen at RM0.53 (S1) followed by RM0.50 (S2).

DSONIC (Not Rated). Yesterday, DSONIC rallied 7.0 sen (5.3%) to settle at RM1.39. Trading volume was at a two and a half month high with 8.5m shares changing hands. As a result of the bullish move, DSONIC has broken out of its short-medium-term resistance following a two-month sideways consolidation phase. Both the MACD and Stochastic have also hooked upwards in tandem with the increase in buying momentum. Hence, traders may expect further upside over the coming days. From here, we expect the RM1.45 (R1) February Top to be tested next. Beyond that, the next resistance level is located at RM1.55 (R2). Downside support levels are RM1.30 (S1) and RM1.21 (S2).

Source: Kenanga Research - 8 Apr 2016