· ESCERAM (Trading Buy @ 44 sen). Since August this year, ESCERAM has been on an uptrend amid spill-over effects from the rubber glove sector and as the Group’s CEO painted a positive outlook on the company. Nevertheless, the share price was not immune to the recent pullback in the overall market, and has returned to the upwards trendline where a Hammer reversal candlestick was formed on Monday. Yesterday, the share price ended at 44.0 sen (+2.0 sen) to provide an entry point for traders following confirmation of this bullish reversal. Technically, the 14-day Stochastic indicator has a buy signal and the trend still favours the upside. Hence, we expect the share price to move higher for a retest of the 47.5 sen resistance (R1) and possibly further at 54.0 sen (R2) next. Support in the meantime is located at 40.0 sen (S1) and 37.0 sen (S2).

· AJIYA (Not Rated). AJIYA ended the day at RM4.41 (+19.0 sen) after the company announced the completion of its private placement exercise yesterday. From a technical perspective, AJIYA’s overall trend is bullish with the share price above all three key SMAs (20-day, 50-day and 100- day). After a month-long sideways consolidation phase, the share price has registered a marginal breakout above the RM4.38 resistance on increased volume. This signals a potential continuation of its prior uptrend with further gains expected ahead. From here, overhead resistance can be found at RM4.90 (R1) and RM5.22 (R2), while support is located at RM4.38 (S1) and 4.19 (S2). 

Source: Kenanga Research - 2 Dec 2015