DRBHCOM (Not Rated). In the latest string of corporate announcements related to Tan Sri Syed Mokhtar, DRBHCOM announced on Wednesday that its indirect subsidiary and minority shareholders of Corwin Holdings Pte Ltd (Corwin) have proposed to dispose of the entire stake in Corwin. This sent DRBHCOM’s share up by 7.0 sen (6.9%) for the day to RM1.09. Until earlier this week, DRBHCOM had been trading within a downtrend channel for nearly a year. The past few days saw a decisive break-out of this channel with higher highs and higher lows. The MACD and RSI indicators are also on a rising trend, and these signal that the share price is on sustainable recovery. From here, expect bias to be to the upside with immediate resistance levels eyed at RM1.20 (R1) and RM1.30 (R2). Downside supports are marked at RM1.00 (S1) and RM0.93 (S2).

MMCCORP (Not Rated). MMCCORP rose 6.0 sen (2.8%) yesterday to close at a 3-month high of RM2.20. The bullish move marks a breakout above the RM2.15 resistance, and signals a continuation of the short-medium-term uptrend. A positive display from the MACD (bullish crossover of the signal and zero line), coupled with yesterday’s high trading volume is also indicative of a move higher. Additionally, investors may also take the recent “Golden Crossover” between the 3 key SMAs (20-day, 50-day and 100-day) as another entry signal. That being said, investors should also be wary of overhead resistances at RM2.33 (R1), and RM2.50 (R2). Downside supports can be identified at RM2.13 (S1) initially and RM2.03 (S2) next.

Source: Kenanga Research - 5 Aug 2016