HALEX (Not Rated). Yesterday, HALEX surged to an intra-day high of RM0.505 before paring gains to finish at RM0.48, up by 6.0 sen (14.3%). Earlier this month, HALEX’s share price broke out of a steady downtrend and commenced a strong uptrend to a high of RM0.445 before pausing for breath between RM0.415-RM0.445 late last week. Consequently, the 20-day and 50-day SMAs have also completed a “Golden Crossover” to signal the start of a bullish phase. With yesterday’s high volume breakout, the share price has now confirmed a “”Bullish Flag” pattern, which signals the next leg of the rally. From here, HALEX could potentially climb toward RM0.56 (R1) where light resistance is expected, before reaching the “Flagpole” measurement objective of RM0.63 (R2). Immediate support is located at RM0.415- RM0.445 (S1) and RM0.35 (S2) further below.

MBSB (Take Profit @ RM1.12). MBSB inked a fresh 1-year high level of RM1.12 by inching 7.0 sen (6.67%) yesterday, after undergoing a strong 5-day rally since 12 Jan 2017. To recap, we recently recommended a ‘Trading Buy’ on the stock at RM1.00 (report dated 12-Jan 2017), after MBSB staged a breakout from its multi-month consolidation channel. With the stock meeting and surpassing our target price of RM1.11 intra-day yesterday, we opt to take this opportunity to lock in profit (12% gain) in view of its deeply overbought condition on the RSI and Stochastic. Furthermore, the RSI level is observed to have never been in such overbought levels since April 2015. Thus, we do not discount the possibility of a near-term healthy pullback to neutralize the aforesaid condition. Resistance levels are capped at RM1.12 (R1)/RM1.19 (R2), while support levels are tied at RM1.05 (S1) followed by RM1.00 (S2) further south.

Source: Kenanga Research - 18 Jan 2017