TRC (Trading Buy, TP@RM0.65 ; SL@RM0.54). TRC surged 6.0 sen (11.76%) to close at RM0.57 yesterday, staging a technical breakout from its bullish ‘Flag’ chart pattern. Strong uptick depicted by daily RSI and Stochastic are suggesting that the bulls are converging on the stock. From here, TRC could look to gear higher towards RM0.60 (R1) and possibly our target price objective of RM0.65 (R2). Key support levels are found at RM0.545 (S1) and RM0.505 (S2) lower, while out protective stop-loss level is placed at RM0.54 (1 bid below the S1 level).

HALEX (Take Profit @ RM0.75). Recall that we had previously recommended a Trading Buy call on HALEX (report dated 21 March 2017), after the share price staged a technical breakout from its ‘Flag-like’ chart pattern. Since then, the share price rose to the occasion and surpassed our target price objective of RM0.74. At this point of time, the stock is currently taking a breather from its recent rally, forming a ‘Doji’ candlestick during yesterday’s session that signifies investors' indecision of the share price direction. Key indicators (RSI and Stochastic) are also deeply overbought to suggest that upside could be limited from here. Thus, we opt to take profit on the stock to secure a capital gain of 21.9%, while we will re-look for a more compelling re-entry opportunity later on.

Source: Kenanga Research - 28 Mar 2017