JCY had been on a sustained downtrend since recorded marking high a year back at RM1.62. However, the share price is poised for a major trend reversal. Last week, JCY confirmed the “Double Bottom” after breaking above the 58.5 sen trigger-line. The influx of buying interest also resulted in a breakout above the 20-, 50-, and 100-day SMA. More recently this week, the share price had been hovering just above the trigger-line, and closed at 60.5 sen yesterday. We reckon that the current consolidation is a mere pause as the share price catches its breath before the next leg up to 70 sen. We are optimistic that the share price would resume its advance fairly soon, and this view is further supported by the MACD indicator which has turned bullish. Traders may consider buying into the 

stock with a 68.5 sen target price (3 bids below 70 sen measurement objective). A stop-loss should also be placed at 57 sen.

 

Source: Kenanga