SUCCESS (Not Rated). SUCCESS’s share price has been on a tear in recent weeks, having gained more than 70.0 sen since it broke out of its RM2.34 resistance barely a month back(10-Feb). This came amid the release of its 2Q17 earnings which showed a 66.6% YoY jump. Yesterday, the share price further broke out into a fresh record, to finish up 11.0 sen (3.7%) for the day at RM3.11. Chart-wise, the share price has confirmed a “Bullish Flag” pattern which signals a continuation of its prior run after a brief week-long pause. From here, we expect further gains towards the next resistance at RM3.20 (R1) and RM3.42 (R2), before reaching the “Flag-pole” measurement objective of RM3.58. Any near-term weakness towards the RM3.00 (S1) support may be viewed as a buying opportunity, although a decisive break below the major support at RM2.85 (S2) would be highly negative for the stock.

MUDA (Not Rated). MUDA has been trading on a downtrend trajectory over the past year since it reached its all-time high level of RM2.60 back in 13 Jan 2016. Yesterday, MUDA surged 18.0 sen (11.92%) to close at RM1.69 on strong trading volume, breaking out from its multimonth downtrend resistance-turned-support trend line. Buying interest on the stock had piled up encouragingly as depicted by the MACD line performing a bullish convergence away from its zero-line on the back of strong hook up by the daily RSI. From here on, MUDA could look to gear higher up towards RM1.70 (R1) and possibly RM1.85 (R2) next in the near-to-mid term. Downside supports are located at RM1.60 (S1) followed by RM1.46 (S2).

Source: Kenanga Research - 9 Mar 2017