JHM (Not Rated). JHM has been consolidating after reaching a high level of RM0.675 back in 11 May 2016. The share price has surged 7.5 sen (11.63%) yesterday to stage a gap-up, breaking out from its resistance-turned-support level of RM0.675 (S1) to settle at RM0.72. On the back of very strong trading volume, the MACD histogram has also performed a bullish crossover while RSI has also reflected the strengthening buying momentum. With follow-through buying interest, we reckon that the share price could look to trend further up towards RM0.745 (R1) and possibly RM0.82 (R2) next. Meanwhile, failure to garner buying interest again could result in the share price consolidating towards RM0.675 (S1) with next support level located at RM0.65 (S2).

MIECO (Not Rated). A stronger USD over the past few days has resulted in buying interest in export-related counters. Among them was MIECO which rallied 4.5 sen (5.3%) to RM0.89, on trading volume which rose to a seven-month high of 7.7m shares. Chart-wise, MIECO has broken out of its sideways trend to confirm a “Rectangle” formation. This indicates that the share price is poised to commence a new uptrend after being directionless for the past three months. At the same time, the MACD has also hooked up above the zero-line to reflect the shift in momentum from bearish to bullish. Hence, traders may expect the share price to move towards the “Rectangle” measurement objective in the coming weeks. Resistance levels to look out for are RM0.925 (R1) and RM1.00 (R2) while support levels are RM0.85 (S1) and RM0.80 (S2).

Source: Kenanga Research - 31 May 2016