VS (Not Rated). VS surged 8.0 sen (6.11%) to close at RM1.39 on strong trading volume, breaking out from its consolidation phase resistance level of RM1.37. Despite being addressed as overbought by the RSI and Stochastic, MACD histogram is performing a strong bullish convergence to portray a bullish outlook ahead. With follow-through buying interest, the share price could possibly head towards its target objective of RM1.50 soon. Immediate overhead resistance is seen at RM1.42 (R1) followed by RM1.50 (R2) next, while downside supports are noted at RM1.37 (S1) and RM1.30 (S2).

JHM (Not rated). Yesterday, JHM surged 10.0 sen (8.3%) to close at RM1.31. The share has been on an uptrend since late-May, rebounding each time it retested 20-day SMA. Yesterday, the share price managed yet another strong rebound from the 20-day SMA on high volume – providing an entry point for shorter term traders. Concurrently, the share price has also confirmed a “Bullish flag” pattern to signal a continuation of its prior uptrend after a brief pause. Traders may enter now, with upside target of RM1.34 (R1) followed by the “Flagpole” measurement objective of RM1.53/1.54 (R2). Downside risk appears fairly limited with strong support expected at the “Morning Doji” RM1.20 (S1). Further down, support is located at RM1.03 (S2).

Source: Kenanga Research - 26 Jul 2016