ECONBHD (Not Rated). ECONBHD has been trading on an upward trend channel for over the past 1.5 months. The stock surged 4.0 sen (2.17%) to close at an all-time high level of RM1.88 yesterday, breaking out from its trend channel resistance-turned-support level of RM1.84 (S1). The underlying outlook is looking positive as the stock is currently being supported by all its up trending moving averages. Indicator-wise, MACD histogram is making higher highs on its bullish convergence on the back of incremental trading volume. If followthrough buying persist, ECONBHD could look to gear further up towards RM1.93 (R1) and possibly RM2.10 (R2) in the near-to-mid term. Nonetheless, we do advocate investors to adopt a more conservative stance entering into the stock given that the RSI and Stochastic are in overbought levels. Any retracement towards the RM1.84 (S1) to neutralise the overbought condition would offer a good opportunity to pick up the stock.

HIBISCS (Not Rated). Yesterday, HIBISCS surged 4.5 sen (17.6%) to finish at RM0.30 on high volume (98.0m shares). Last Wednesday, the company announced that it will buy Shell’s 50% interest and operator-ship in the 2011 North Sabah Enhanced Oil Recovery production sharing contract for US$25.0m. From a charting perspective, HIBISCS' short to longer term trend is positive with the share price already broken out of its sideways range at RM0.22 earlier in the month. Coupled with the rising momentum indicators, we can expect the share price to be positively biased from here. Major resistances to take note includes RM0.31 (R1). Should this level be taken out next, HIBISCS would then have a clear path towards RM0.425 (R2) further up. Downside support levels are RM0.23 (S1) and RM0.20 (S2).

Source: Kenanga Research - 25 Oct 2016