KGB (Trading Buy; TP: RM0.555, SL RM0.415). Yesterday, KGB’s share price shot up 4.0 sen (9.4%) to finish at an 18-month high of RM0.465. Just two weeks back, the company had announced its FY16 earnings, which returned to the black at RM8.7m, compared to a loss of RM2.5m (in FY15). From a charting perspective, KGB’s share price has been on a rising trend since November. The overall technical outlook remains positive, with the share price firmly above the key SMAs and the momentum indicators, all in a bullish state. In fact, the share price has just broken out of a “Bullish Flag-like” pattern as a result of yesterday’s sharp move. This signals that KGB is poised to resume its prior uptrend after a brief pause. From here, expect further gains towards overhead resistances RM0.50 (R1) and RM0.57 (R2). Downside support levels are RM0.43/0.445 (S1) and RM0.40 (S2) further below.

MUDAJYA (Not Rated). In light of more clarity over the commissioning of its India IPP project after MUDAJYA has received a notification letter from the joint-venture company, RKM Powergen Pvt Ltd, on its plan to supply power to Uttar Pradesh Power Corp Ltd., MUDAJYA surged 10.5 sen (12.8%) to close at RM0.925 yesterday. From a technical perspective, MUDAJYA has staged a rebound play from its support level of RM0.80 after undergoing a consolidation phase few weeks ago. Daily RSI and Stochastic have hooked up strongly from their respective oversold position, reinforcing the bullish reversal play. From here, MUDAJYA could look to set sights at its immediate resistance level of RM0.94 (R1), whereby a decisive takeout of the R1 will clear the path towards the psychological RM1.00 (R2) next. On the flip side, inability to take out the R1 level would see MUDAJYA resulting in another consolidation phase instead, where support could be found at RM0.90 (S1)/RM0.84 (S2).

Source: Kenanga Research - 7 Mar 2017