JTIASA (Trading Buy, TP @ RM1.36). JTIASA is back in the limelight as it staged a rebound play from its multi-month consolidation phase by surging 6.0 sen (5.26%) to break out from its resistance-turned-support level of RM1.18 (S1) to close at RM1.20. On the back of increasing trading volume, MACD histogram has performed a bullish convergence and is poised to breach above its zero-line soon. Besides, the strong hook-up in RSI and Stochastic from their oversold regions are also an incentive to investors, indicating that the bulls are building up strength. With follow-through buying interest, the stock could look to retest the RM1.23 (R1) level and any breach of the R1 level would set sight further up at RM1.39 (R2) next. Meanwhile, immediate support levels are located at RM1.18 (S1) and RM1.13 (S2). We recommend a Trading Buy on this stock with a target objective of RM1.36 (3 bids below R2 level), with a stop-loss level of 1.10 (3 bids below S2 level).

MSC (Not rated). Yesterday, MSC staged a breakout from a brief period of consolidation by surging 14.0 sen (5.00%) to RM2.92. The share price is now in the midst of retesting the 3-month high of RM2.93. Nevertheless, increased trading volume, coupled with a bullish MACD crossover suggest that MSC is likely to overcome this hurdle in the short-term. Short-term investors should watch for a breakout above the RM2.93 (R1) resistance before entering. Should this level be taken out in a decisive manner, MSC would then have a clear path towards RM3.18 (R2) and possibly RM3.32 (R3) next. Downside should be fairly limited with support pegged at RM2.75 (S1) and RM2.70 (S2) further down.

Source: Kenanga Research - 9 Aug 2016