TRC (Stopped Out). Recall that we previously issued a buy call on TRC (report dated 13-April), after the share price staged a technical breakout from its ‘Flag’ chart pattern. Nonetheless, the share price failed to build up follow through buying interest and instead consolidate further. Yesterday, the share price dipped to an intraday low of RM0.43 before closing 1.5 sen (-3.19%) at RM0.455 for the day. Indicatorwise, MACD histogram is undergoing its bearish convergence on the back of declining RSI, laying a hand on an uninspiring outlook. As the overall sideways trend has been broken while the share price had triggered our stop-loss level, we are forced to limit our losses at this juncture. Overhead resistance is seen at RM0.46 (R1) and RM0.50 (R2), while downside support is limited at RM0.44 (S1) and RM0.40 (S2).

MAA (Not Rated). Yesterday, MAA’s share price rallied to a five-year high to close at RM1.02 (+4 sen or +4.1%). Trading volume was elevated at 1.5m shares. On the daily chart, yesterday’s bullish move has triggered a breakout of an “Ascending Triangle” pattern. This signals that MAA is poised to continue its prior uptrend after multiple attempts to breach the psychological RM1.00 level. The MACD indicator has also completed a signal line crossover to reflect a pickup in buying momentum. From here, expect further gains over the next few days towards RM1.08 (R1) and RM1.13 (R2) next. Downside risks appear limited with the resistance-turned-support at RM1.00 (S1) and RM0.94 (S2) further down.

Source: Kenanga Research - 28 Apr 2016