SEDANIA (Not Rated). Yesterday, SEDANIA saw its share price surging 3.5 sen (+8.3%) to RM0.455 on trading volume, which was the highest since July last year. The share price has climbed from a low of RM0.36 earlier this month (15th of March) before pausing for a breather just below the 50- and 100-day SMAs (RM0.42/RM0.43). Nevertheless, SEDANIA is poised to resume its bullish move as a result of yesterday’s decisive breakout above the RM0.43 level. From here, expect the share price to climb further towards the January highs of RM0.51/RM0.52 (R1). Should this resistance level be taken out next, we would then set our sights on RM0.65 (R2). Meanwhile, downside support should be present at RM0.42 (S1) and RM0.40 (S2) below.

JCY (Not Rated). Yesterday, JCY’s share price rose 2.5 sen (+3.5%) to close at RM0.74 on the back of improved trading volume. It is observed that the share price has formed an inverted ‘head-and-shoulder’ chart pattern as it looks to retest its immediate resistance level of RM0.75 (R1). Key indicators look promising as depicted by the bullish convergence of the MACD, while RSI and Stochastic are also trending up strongly to imply rising buying interest. Should JCY manage to convincingly stage a breakout from its RM0.75 (R1)resistance level to confirm the bullish chart pattern, the upside potential could be elevated towards RM0.83 (R2) and possibly to its multi-year high level of RM0.90 (R3) in the near-to-mid-term. Hence, we advocate investors to look out for a technical breakout before entering the stock. On the flip side, failure to break out from the aforesaid resistance level could lead the share price to consolidate towards RM0.70 (S1) and possibly RM0.65 (S2).

Source: Kenanga Research - 31 Mar 2016