TMCLIFE (Trading Buy, TP: RM0.935, SL: RM0.765). TMCLIFE’s share price has been rallying for a fourth straight day. However, it wasn’t until yesterday that trading volume picked up in a meaningful way. For yesterday’s trade, TMCLIFE was up by 2.5 sen (3.1%) to RM0.835. Chart-wise, the share price had broken out of a “Bullish Flag” pattern after consolidating sideways for the past two months. Widely regarded as the midway point of an overall upswing, the recent breakout at RM0.79 marks the start of the next leg up. From here, it is expected that the share price to climb towards the “Flagpole” measurement objective (MO) of RM0.95 over the coming weeks (look to take profit 3 bids below MO at RM0.935). Traders may consider buying now with a conservative stop-loss (5 bids) below the RM0.79 resistance-turned-support.

ECONBHD (Not Rated). News that ECONBHD had secured a RM208.0m contract sent its share price soaring, with a 9.0 sen gain (6.6%) to RM1.45. Trading volume rose to 2.9m shares, more than double the 30-day average of 1.3m shares. On the daily chart, ECONBHD has confirmed an “Ascending Triangle” pattern following yesterday’s breakout above the RM1.40 resistance level. This indicates that the share price is poised to resume its uptrend after pausing for breath over the past two months. From here, expect a gradual climb towards the “Ascending Triangle” measurement objective of RM1.61. Traders may consider buying now, or on any pullback towards the RM1.40 (S1) resistance-turnedsupport. Resistance levels to look out for are RM1.50 (R1) and RM1.61 (R2) while support levels are RM1.40 (S1) and RM1.30 (S2).

Source: Kenanga Research - 7 Jun 2016