MEXTER (Not Rated). Earlier last month, its share price broke out of its sideways trend at RM0.08 (27-May) and commenced a four-day rally to as high as RM0.23. This came amid strong 1Q16 earnings and a positive commentary on future prospects by the management. While the share price pulled back to RM0.15 over the subsequent two weeks, buying interest returned yesterday after the share price shot up 3.5 sen (22.6%) to finish at the day’s high of RM0.19. More importantly, MEXTER has broken out of a “Bullish Flag” pattern to signal a continuation of its prior uptrend. From here, we expect a retest its recent high of RM0.23 (R1), before reaching the “Flagpole” measurement objective of RM0.31 (R2). Traders may look to buy now or on any weakness towards RM0.15 –RM0.17 (S1). The technical picture is deemed bullish unless the RM0.15 (S2) support is violated.

ECONBHD (Not Rated). ECONBHD has been trading sideways within RM1.26-RM1.49 since April after undergoing a strong price run-up during the month of March. Yesterday, the share price staged a strong reversal play from its immediate support level of RM1.29 by surging 8.0 sen (6.11%) to close at RM1.39. A long white candlestick was formed after the formation of a ‘Doji’ candlestick, reinforcing the authenticity of the rebound play. If follow-through buying persists, we reckon that the share price could look to rally further towards RM1.40 (R1) and retest its alltime high level of RM1.49 (R2) in the near-term. Any decisive breakout away from its R2 level will lead to a climb higher towards RM1.60 (R3) next. Meanwhile, support levels are found at RM1.29 (S1) followed by RM1.26 (S2).

Source: Kenanga Research - 21 Jun 2016