HALEX (Not Rated)

• HALEX climbed 19.5 sen (20.86%) yesterday to reach RM1.13.
• Yesterday’s move was accompanied by high trading volume and the overall technical outlook is turning positive as the MACD line had just crossed above the Signal line.
• Share appears to be in the midst of retesting the RM1.18 resistance level after a month of consolidation.
• A decisive break from the RM1.18 (R1) resistance level would likely signal further gains towards R2 at RM1.35. Downside support level, however, can be found at RM1.01 (S1) and RM0.910 (S2) where investors may buy on dips.

TRC (Trading Buy, TP: RM0.985; SL: RM0.625)

• TRC rallied 6.5 sen to RM0.775 (9.1%) yesterday, accompanied by 3.4m shares traded – 8x time of its average volume.
• Chart displays higher highs and higher lows suggesting short-medium term uptrend is in place.
• Momentum indicators are in the bullish state, i.e. MACD breaking above trend line and oscillator showing upticks.
• Expect advancement towards RM0.900 (R1) and RM1.00 (R2) further up.
• Any near-term retracements towards the 100-day SMA at RM0.730 (S1) may be viewed as buying opportunities.
• Aim to take profit at RM0.985 and place a stop-loss at RM0.625.

Source: Kenanga Research - 23 Jan 2018