PWROOT (Close Position). Recall that we had previously highlighted PWROOT with a buy call (report dated 23 Dec 2015 @ RM2.75) after the share price gave a technical rebound signal from its lower channel support with a gap up manoeuvre. However, it didn’t perform according to our expectation as it consolidated further (decline 11.0 sen or -4.0%) since then towards RM2.64 yesterday. Key momentum indicators have also waned to suggest the tepid outlook ahead. We deem our previous technical call as nullified, thus deciding to exit. We will revisit the stock once its technical picture turns compelling again.

JAYCORP (Take Profit @ RM1.26). Previously, we recommended a Trading Buy on furniture maker JAYCORP (report dated 22 Dec 2015 @ RM1.23) when the share price broke out of an “Ascending Triangle” pattern. While the share price came within a whisker of our RM1.38 target price yesterday (high of RM1.35), JAYCORP failed to hold onto its intraday gains and subsequently ended the day at RM1.26, down by 4.0 sen (-3.1%). Chart-wise, JAYCORP has formed a black candlestick with a long upper shadow which is reflective of indecision and a loss of bullish momentum. Historically, the share price has the tendency to succumb to profit-taking activities after single-day spurts (as circled). Hence, we suggest that traders take profit for now, and revisit the stock when its technical readings become more favourable. Immediate resistance is pegged at RM1.39 (R1) and RM1.45 (R2) while support is located at RM1.20 (S1) and 1.10 (S2).

Source: Kenanga Research - 8 Jan 2016