JCY (Not Rated) JCY has been trading range bound within RM0.65-RM0.76 since late January this year. It had since formed a strong support at the RM0.65 level. Currently, JCY is mired in deep oversold situation hovering just above its key support line of RM0.65. Yesterday, it rose 1.0 sen (1.53%) to close above its 20-day SMA at RM0.665 on higher trading volume. Uptick in Stochastic away from its oversold threshold suggests that a rebound play could be on the cards as depicted by its historical trend pattern (circled on chart). Besides, MACD histogram has also staged a bullish crossover to lend a hand on the positive-bias, albeit still slightly below its zero-line. From here, we expect the share price to stage a reversal play soon towards its channel resistance level of RM0.74 (R2) in the near-term. Interested traders may consider entering the stock now with a conservative stop-loss placed 5 bids below the RM0.65 (S1) level at RM0.625. Overhead resistance is capped at RM0.70 (R1) followed by RM0.75 (R2), while supports are located at RM0.65 (S1) and RM0.60 (S2).

KEINHIN (Not Rated). Yesterday, KEINHIN surged to a three-month high of RM1.10, up by 8.0 sen (7.8%) on high trading volume. With the bullish move, the share price has broken out from its sideways trend (RM0.88 – RM1.02). This builds on the earlier “Golden Crossover” last week to signal the start of an uptrend. At the same time, the MACD has also crossed above the zero-line to indicate a shift in momentum from neutral to bullish. Hence, we expect KEINHIN to be bias to the upside from here. The next resistance levels to look out for are RM1.12 (R1) and RM1.30 (R2). Traders may consider buying on any weakness above the RM1.02 (S1) resistance-turned-support. The technical picture is deemed bullish until and unless the RM0.88 (S2) support is violated in a decisive manner.

Source: Kenanga Research - 8 Jun 2016