DRBHCOM (Not Rated). Yesterday, DRBHCOM rose 5.0 sen (3.6%) to stage a breakout from its key resistance-turned-support line of RM1.38 (S1) on increased trading volume. Technical indicators are also encouraging with the bullish crossover of the MACD histogram above the zero-line, while the hook up in RSI indicator are suggesting that the bulls are gaining grounds. With follow-through buying, the stock could set to seek a higher high at RM1.58 (R1) and possibly RM1.68 (R2) next. Nonetheless, we do not discount that a short-term pullback could likely occur given that the Stochastic is in deep overbought and showing lethargic signs. Any retracement towards the RM1.40/RM1.38 (S1) level would be a good level to pick up the stock, while the next support level is seen at RM1.27 (S2).

MYEG (Not Rated). MYEG surged 10.0 sen (4.6%) to break out from its bullish ‘Flag’ chart pattern, closing at RM2.26 during the closing bell. The underlying trend outlook is still positively intact, as the share price is currently supported by all its key SMA trend lines. Besides, MACD histogram is looking to set a higher high on its bullish convergence. From here, the stock could climb further up towards RM2.30 (R1) and possibly retest its all-time high level of RM2.38 (R2) in the near-to-mid-term. On the flipside, we reckon that the share price climb could face some selling resistance given that it is currently overbought, as showcased by the RSI and Stochastic on the daily chart. Support tiers are located at RM2.25 (S1) and RM2.13 (S2) further south, where any slight retracement towards the S1 level would be a good entry point.

Source: Kenanga Research - 21 Sep 2016