IOIPG (Trading Buy, TP: RM2.67). Yesterday, IOIPG rose 9.0 sen (3.9%) to stage a breakout from its ‘Pennant’ chart pattern to close at RM2.43 on strong trading volume. The share price had previously rallied to a high of RM2.42 last month before it consolidated to neutralise the overbought situation. On the back of the strong share price surge yesterday, the RSI indicator has hooked up strongly to suggest an influx of buying momentum. With this bullish signal, we reckon that the share price could look to rally on follow-through buying interest towards its resistance level of RM2.50 (R1) and possibly our target objective of RM2.67 next. (3 bids below its resistance level of RM2.70 (R2)). Meanwhile, downside support could be found at RM2.32 (S1) followed by RM2.20 (S2), with stop-loss set 3 bids below the S1 level at RM2.29.

FFHB (Take Profit @ RM1.00). Recall that we had previously issued a Trading Buy call on FFHB (report dated 19-Feb 2016) with a TP of RM1.19. It did rallied, to as high as RM1.14, but had consolidated since then. While there were several attempts of resurgence, followthrough buying remains the missing element. Yesterday, the share price shed another 1.0 sen (-0.99%) to violate the short term trend-line support. As the original technical picture that we had observed is now invalid, we opt to take profit on the stock for now. Meanwhile, we will re-look into the stock once a renewed buy signal emerges. Resistance is marked at RM1.00 (R1) followed by RM1.10 (R2), while supports are at RM0.96 (S1) and RM0.87 (S2) further down.

Source: Kenanga Research - 14 Apr 2016