MYCRON (Trading Buy; TP: RM0.62). On 24-Feb, MYCRON announced a strong set of 1H16 earnings result, with a net profit of RM8.2m reversing the corresponding 1H15 loss of RM6.4m. Over the subsequent five weeks, the share price had more than doubled from RM0.21 to RM0.425 before consolidating sideways between RM0.35-RM0.425 for a month. Nevertheless, the share price broke out of its consolidation phase yesterday, with a 4.5 sen surge (11.3%) to RM0.445. Trading volume rose to 5.0m shares for the day, more than five times the 30-day average. With the bullish move, a “Flag” formation has been confirmed – signalling the start of the next up-leg after pausing for breath. Traders may consider buying now, with a “Flagpole” measurement objective of RM0.635 (aim to take profit at RM0.62) and a conservative stop-loss below the RM0.35 support (RM0.335).

GENTING (Stopped Out). Recall that we had previously issued a trading buy call on GENTING (report dated 22-April) after the share price staged a rebound play from its consolidation phase. Nonetheless, the share price failed to build momentum on its rebound rally and perform a dead-cat bounce instead to consolidate further to violate our stop-loss level of RM8.93. Currently, the overall underlying outlook is looking negative with the MACD histogram trending negatively away from its neutral line on the back of a hook down seen in the RSI indicator. We will re-look the stock in the future once its technical picture turns compelling again. Resistances seen at RM8.80 (R1) and RM9.22 (R2), while supports are noted at RM8.46 (S1) and RM8.12 (S2). 

Source: Kenanga Research - 4 May 2016