MBSB (Trading Buy, TP@RM1.11, SL@RM0.92). After undergoing a prolonged 6-month sideways consolidation phase, MBSB managed to rekindle buying interest by climbing 6.0 sen (6.38%) to close at RM1.00. In tandem with the stronger trading volume, MBSB has broken out from its multi-months resistance-turned-support level of RM0.95 (S1). The bullish convergence and resistance-line breakout by the MACD line is laying a hand on the bullish-bias outlook ahead. From here, we reckon that MBSB could look to resume its prior uptrend to gear towards RM1.05 (R1) and possibly our target price objective of RM1.11 (3 bids below RM1.14 (R2). Downside supports are located at RM0.95 (S1)/ RM0.88 (S2). Our conservative stop-loss level is placed 3 bids below the S1 level at RM0.92.

JOHAN (Not Rated). JOHAN surged 1.5 sen (8.82%) to stage a breakout from its downtrend regression channel, closing at RM0.185 on strong trading volume. Immediate term outlook is looking encouraging, as the underlying stock is currently trading above all its key moving averages for the first time in 3 months. The "hook-up" signals from RSI and Stochastic are also reflecting the increasing buying interest on the stock. Should there be follow-through buying interest, JOHAN could set sights at RM0.20 (R1) and RM0.24 (R2) as its next resistance targets. Downside supports are located at RM0.175 (S1) followed by RM0.15 (S2)

Source: Kenanga Research - 12 Jan 2017