KGB (Trading Buy, TP: RM0.84; SL: RM0.63). KGB’s share price rose 4.0 sen (6.1%) yesterday to RM0.70 on increased volume of 7.0m. Notably, the share price has broken out of a “Symmetrical Triangle” pattern. This potentially signals a resumption of its prior uptrend following a 3-month deliberation. With the key indicators in a bullish state, expect further gains ahead with a swift retest of the RM0.73/RM0.75 (R1) highs. Beyond those levels, the next resistance to look out for is RM0.855/0.885 (R2) where the Fibonacci projection level coincides with the “Symmetrical Triangle” measurement objective. Conversely, downside support levels are RM0.645/0.655 (S1) and RM0.575 (S2).

MMSV (Not Rated). MMSV climbed 12.0 sen (7.9%) yesterday, closing at an intra-day high of RM1.63 with a white “Marubozu” candlestick. 4.7m shares were traded, slightly more than double its 20-day average volume of 2.1m shares. After a few weeks of sideways consolidation, yesterday’s move can be construed as a continuation of an overall uptrend, as seen by the higher peaks and troughs since the beginning of the year. While yesterday’s move barely broke out of its previous high of RM1.61, a further decisive move upwards should see the share trending towards RM1.85 (R1), with another resistance and psychological barrier at RM2.00 (R2). Conversely, some support can be found at the base of its recent consolidation at RM1.43-1.45 (S1), with lower supports at RM1.37 (S2) and RM1.22 (S3).

Source: Kenanga Research - 20 Jul 2017