JOHOTIN (Not Rated). JOHOTIN had consolidated to form a downtrend channel over the past month, after staging an incremental climb since March till end-August. Yesterday, buying interest on the stock re-emerged with the share price rising 4.0 sen (4.76%) to close at RM0.88 on strong trading volume. The strong climb yesterday has led the share price to break out from its downtrend channel, leading a clear path to a higher close towards RM0.90 (R1) to complete its ‘cup and handle’ chart pattern and possibly RM0.955 (R2) next if it breaches above the R1 level. Uptick in RSI and Stochastic are also supportive of the upward-bias movement of the underlying stock. Key supports are located at RM0.84 (S1) and RM0.79 (S2) lower.

OCNCASH (Not Rated). Yesterday, OCNCASH surged 3.0 sen (7.8%) to close at the day’s high of RM0.415. Trading volume rose to six-fold the 30-day moving average with 6.6m shares changing hands. On the daily chart, OCNCASH’s overall technical picture has improved significantly in recent weeks. Among other reasons, the 20- and 50-day SMA had completed a “Golden Crossover” last month, and this was followed by a long-term trend-line breakout a few weeks later. The MACD has also been trending positively in recent months, and yesterday’s breakout signal offers yet another buy signal for traders looking for an entry. From here, we expect the share price to be upside biased, with immediate resistance levels to look out for at RM0.43 (R1) and RM 0.455 (R2). Immediate downside support is at RM0.385 (S1), and RM0.36 (S2) next.

Source: Kenanga Research - 30 Sep 2016