MBSB (Trading Buy, TP@RM1.46 ; SL@RM1.10). MBSB rose 6.0 sen (5.08%) to stage a breakout from its multi-month consolidation zone, closing above its resistance-turned-support level of RM1.21 (S1) at RM1.24. In tandem with the strong volume price action yesterday, the MACD line is observed to have staged a bullish crossover above its Signal line to suggest a resumption of its previous uptrend. The hook-up in RSI is also reaffirming the case by exhibiting strong buying momentum piling on the stock. In short, MBSB could look to gain traction and trend further up. Overhead resistance is envisaged at RM1.37 (R1)/RM1.50 (R2), while our mid-term target price objective is placed 4 bids below the R2 level at RM1.46. Support levels are spotted at RM1.21 (S1)/RM1.13 (S2), while our protective conservative stop loss level should be enforced at RM1.10 (3 bids below the S2 level).

HALEX (Trading Buy, TP@RM0.74; SL@RM0.515)HALEX’s share price rose 3.5 sen (6.0%) yesterday to finish at RM0.615 on increased trading volume of 3.9m shares. Chart-wise, the share price has broken out of its two-month consolidation phase at RM0.60 which confirms a “Flag-like” pattern. Combined with the MACD which has crossed above the Signal line, this indicates that the share price is poised to resume its January run after a pause for breath. Similarly, the RSI has also hooked upwards – reflecting the bullish state. From here, we expect further gains over the coming weeks, and see the possibility for a move towards RM0.70 (R1) and RM0.755 (R2) next. Downside support levels include the RM0.58-0.60 (S1) cluster where investors may accumulate on weakness. Failing which, the next support is located at RM0.53 (S2)

Source: Kenanga Research - 21 Mar 2017