Daily technical highlights – First MoM growth in global Semiconductor sales in four months boosted Tech stocks.

MICROLN (Not Rated). During the month of March 2016, MICROLN had experienced a heavy selldown by investors and had since found strong footing at the RM0.985 (S1) level. On the back of above-average trading volume, MICROLN surged 7.0 sen (6.93%) yesterday to stage a rebound play to close above its 20-day SMA level for the first time since March at RM1.08. Uptick in both RSI and Stochastic away from their oversold levels indicates emerging buying interest on the stock. Should follow through buying interest persist, the share price could look to trend further up towards RM1.19 (R1) and possibly RM1.32 (R2) next. Strong support is seen at RM0.985 (S1) followed by RM0.80 (R2).

JCY (Not Rated). JCY has been trading within its trend channel of RM0.65-RM0.74 for over the past three months. The share price rose 1.5 sen (2.19%) yesterday to close at RM0.70, confirming a rebound pay from its channel support level of RM0.65 (S1). Key indicators such as RSI and Stochastic are also looking positive to supplement the bullish potential. Nonetheless, we observe that upside could be limited from here as the share price could be capped soon at the channel resistance level of RM0.74 (R1). Nonetheless, we deem this could be a good avenue for day traders to capitalise on the reversal play. Meanwhile, if a decisive breakout occurs at the R1-level, immediate further resistance is seen at RM0.80 (R2). Interested day traders should place a protective stop-loss 3 bids below its immediate support level of RM0.65 (S1) at RM0.635, where further downside could be seen at RM0.60 (S2) if the S1 level is broken. 

Source: Kenanga Research - 6 May 2016