JTIASA (Not Rated). Timber-related stocks were actively traded yesterday, with TAANN, JTIASA, and WTK among the top gainers for the day. In particular, JTIASA surged 30.0 sen (22.4%) for the day to close at RM1.64. Yesterday’s breakout above the RM1.45 resistance level confirms a bullish trend reversal after being stuck in a downtrend for almost two years. The 20-day SMA has also completed a “Golden Crossover” with the 50-day SMA earlier last week to reaffirm the buy signal. Aggressive traders may buy now, with RM1.92 (R1) and RM2.12 (R2) as possible targets/ resistance levels. More conservative traders may look to enter on any pullback towards the RM1.50-1.55 support (S1). Further downside support is located at RM1.24 (S2).

WTK (Not Rated). WTK’s share price rallied 11.0 sen (8.15%) to close at RM1.46 yesterday, breaking out from its long-term downtrend resistance level with strong trading volume. A ‘Golden Cross’ has also formed recently to suggest a bullish-bias direction ahead. Besides, we observe that the short-term SMA acts as a good support trend line of which WTK is currently trending above. Indicator-wise, the MACD is currently on a bullish convergence to reinforce the positive outlook. Investors may opt to enter the stock at this technical-breakout, while expecting the share price to retest its 4-year’s high level of RM1.57 (R2) in the near-term.

Source: Kenanga Research - 6 Jan 2016