MRCB (Not Rated)

• MRCB gained 1.0 sen (+1.41%) yesterday to close at RM0.720.
• We believe that there is more upside room for MRCB given the continued positive signals from key momentum indicators, coupled with yesterday’s higher close after an indecisive "doji" last week which could indicate a shift in sentiment.
• We expect MRCB to test the resistance level of RM0.770 (R1). Should it break and close above this level, we look towards RM0.890 (R2) as the next resistance.
• Conversely, supports can be identified at RM0.695 (S1) and RM0.570 (S2).

SCOMNET (Not Rated)

• SCOMNET gained 2.0 sen (+4.5%) to close at RM0.465, marking its breakout from RM0.455 level of previous high.
• Trend line is bullish with technical indicators seemingly favouring the upside as indicated by upwards movement in technical indicators (MACD, RSI and Stochastic) as well as “Golden Crossover” between key SMAs.
• Expect follow-through buying towards RM0.520 (R1) with a decisive breakout seeing higher resistance towards RM0.565 (R2).
• Conversely, if buying momentum failed to sustain, expect an immediate support at RM0.400 (S1) and RM0.390 (S2)

Source: Kenanga Research - 24 Jul 2018