KGB (Trading Buy, TP: RM0.995; SL: RM0.875)

• KGB gained 4.0 sen (+4.52%) to close at RM0.925 yesterday, on the back of above-average volume.
• Two days ago, we wrote that we may consider calling a “Trading Buy” should KGB break above RM0.900. Yesterday’s close above the RM0.900 level represented a breakout, fulfilling the conditions. Key SMAs and momentum indicators are also showing positive signals suggesting more upside room.
• From here, we expect the share to move to test its resistance of RM0.970 (R1) and RM1.02 (R2), should the first level be taken out.
• Any downside bias should see some buying interest at its previous resistance turned support of RM0.900 (S1) and at its second support level of RM0.830 (S2).

MPI (Not Rated)

• MPI gained 40.0 sen (+3.25%) to close higher at RM12.70, firmly above all key moving averages.
• Trend line is positive since mid-May with yesterday’s close marked a breakout from prior resistance level at RM12.48, backed by stronger-than average trading volume.
• Technical outlook appears leaning on the upside at this juncture, underpinned by encouraging momentum indicators as evidenced by the bullish MACD crossover, upticks in RSI and Stochastic as well as “Golden Cross” state between key SMAs.
• From here, we expect the share to advance towards RM13.00 (R1), with a decisive breakout will see the share on the next leg towards RM14.50 (R2)
• Conversely, support levels are identified at RM11.98 (S1) and RM11.00 (S2) further down.

Source: Kenanga Research - 7 Sept 2018