· JCY (Trading Buy, TP: RM0.85). Yesterday, JCY gapped up and closed at RM0.765 (+2.5 sen or +3.38%). Chart-wise, the share price broke out from downtrend trend line resistance of RM0.735, while a bullish “Flag” pattern is taken shape. JCY is well supported by all 3 SMAs and the surged of daily trading volume. Despite Stochastics are trending into overbought territory, MACD histogram continues its bullish divergence, while RSI is hooking upwards, this is suggesting strong buying interests that could possibly rally the stock further. As such, we are placing a “Trading Buy” call on JCY with a target price of RM0.85 (based on objective measurement), while a strict stop-loss of RM0.72 should be placed (3 bids below support level of RM0.735 (S1)).

· MPI (Take Profit @ RM7.19). To recall, we issued a “Trading Buy” call on MPI on 29 Jul 2015 where the share price broke above the downtrend trend line resistance. Since then, the share price rallied and hit our target price of RM7.19. Chart-wise, the share price is hovering around RM7.19 level. A long black candlestick has appeared in the daily technical chart, suggesting bears overtook bulls in yesterday trade. Moreover, Stochastics and RSI indicators are retreating from the overbought territory, coupled with decreasing daily trading volume, implying that the buying interest is waning. Thus, we are “Taking Profit” on MPI for now and may revisit the stock should the technical picture turns attracting again. 

Source: Kenanga Research - 4 Aug 2015