MHB (Not Rated). On the back of strong trading volume, MHB rose 4.0 sen (3.45%) to stage a breakout away from its resistance-turnedsupport level of RM1.18 to close at RM1.20 yesterday. The underlying outlook is turning more positive given that the MACD histogram has staged a bullish crossover while emerging above its zero-line. Besides, the strong uptick seen in the Stochastic is also lending a hand on the bullish-bias by suggesting that buying momentum is surging. While we accept the fact that there could be clusters of resistance level ahead, we reckon the emergence of follow-through buying interest over the near-term could provide trading opportunities to short-term traders as we expect the share price to climb higher towards RM1.30 (R1) and possibly RM1.38 (R2) next. Immediate supports are noted at RM1.18 (S1) and RM1.09 (S2) sequentially.

RAYA (Not Rated). Last month, we highlighted RAYA when its share price broke out of its downtrend channel at RM0.295 (Report dated 27- May). In the subsequent two days, the share price rallied further to as high as RM0.37 (+25.4%) before succumbing to profit-taking activities. Now that the share price has retreated back its channel resistance-turned-support, RAYA is presenting traders with yet another entry point. In yesterday’s trade, RAYA surged 2.0 sen (+8.0%) to RM0.27 on high trading volume. The share price has also confirmed a “Morning Doji Star” to signal an inflection point. Hence, we expect price bias to be to the upside from here. Immediate resistance levels to look out for are RM0.30 (R1) and RM0.37 (R2), while support levels are RM0.24 (S1) and RM0.22 (S2). As before, the technical picture is deemed bullish until and unless the RM0.20/0. 22 (S2) support is violated in a decisive manner.

Source: Kenanga Research - 10 Jun 2016