DSONIC (Not Rated). DSONIC has been consolidating within a downtrend channel since February. The share price has finally garnered strong investors’ interest to rally 7.0 sen (5.26%) to break out from its downtrend channel resistance to close at RM1.40 yesterday. In tandem with the strong trading volume displayed, buying momentum is also pilling up on the stock as depicted by the upticks of RSI and Stochastic. The bullish convergence above the zero-line by the MACD histogram is also reinforcing the bullish outlook ahead. Should follow-through buying interest persist, the stock could likely seek higher highs at RM1.44 (R1) and possibly RM1.52 (R2) next. Nonetheless, we observe that the stock has the tendency for a short-term pull back whenever it enters into an overbought state. Hence, interested investors could look to enter when the stock retraces towards RM1.35 (S1).

ECONBHD (Not rated). Yesterday, ECONBHD rose 5.0 sen (3.4%) to close at a all-time high level of RM1.51. Trading volume was more than double the 30-day moving average (1.6m) with 3.6m shares changing hands. Overall, ECONBHD’s primary trend is bullish with the key SMAs on an upwards climb. The bullish move yesterday signalled a continuation of its prior uptrend, after a healthy pullback in June. On top of that, the persistent bullish convergence of MACD histogram and healthy RSI are also supporting the bullish-bias outlook, suggesting that there could be more upside from the current level. From here, we expect the share price to continue its general uptrend with a clear line of sight towards the next resistance at RM1.61 (R1) and RM1.68 (R2). Support can be identified at RM1.44 (S1) and RM1.37 (R2).

Source: Kenanga Research - 2 Aug 2016