DRBHCOM (Not Rated)

• DRBHCOM gained 7.0 sen (+3.52%) to close at RM2.06 yesterday.

• Technical-wise, the share has been on a rebound rally since late-October. However, we believe at retracement is likely to happen soon given that it failed to break above the 100-day SMA. We note that the 100-day SMA proved to be a key level which saw a 1-month consolidation of DRBHCOM in September.

• Coupled with the lack of trading volume in recent bullish candlesticks, we believe that DRBHCOM will likely face resistances at RM2.09 (R1) close to its 100-day SMA and RM2.17 (R2).

• Conversely, downside supports can be identified at RM1.97 (S1) and RM1.79 (S2).

QL (Not Rated)

• QL gained 19.0 sen (+2.68%) to close at RM7.28 yesterday.

• The share has been consolidating within an ascending triangle since late-September. Yesterday’s candlestick close represented a breakout above the ascending triangle.

• The breakout, backed by strong trading volume leads us to believe that this may be a signal of the start of QL’s next run. The MACD indicator is close to displaying a bullish crossover as well.

• Should the buying momentum continue, we expect the share to head towards resistances of RM7.44 (R1) and RM7.64 (R2) while any downside bias should see supports at RM7.13 (S1) and RM6.97 (S2).

Source: Kenanga Research - 8 Nov 2018