JTIASA (Take Profit @ RM1.29). Earlier in August (9-Aug), we recommended JTIASA when the share price began to show signs of a rebound at RM1.20. Since then, JTIASA had risen to as high as RM1.37, surpassing our RM1.36 technical target price two weeks back. Yesterday, the share price finished flat at RM1.29. The technical picture has now deteriorated, evidenced by the “MACD Bearish Divergence”. Unless and until JTIASA offers another buy signal, we suggest that investors lock in prior gains for now. Immediate resistance levels to look out for are RM1.37 (R1) and RM1.50 (R2), while downside support levels are RM1.20 (S1) and RM1.08 (S2).

PIE(Close Position). Last month (7-September), we issued a trading buy call on PIE after the stock saw rekindled buying interest to break out from its consolidation zone at RM1.94. Nonetheless, the stock had failed to live up to its momentum as it retraced further to break down from its key support-turned-resistance of RM1.83 recently. MACD histogram has staged a bearish crossover to suggest that downside pressure still persist on the stock. Thus, we opt to close position on the stock while keeping a look out for another buy signal. Overhead resistance are seen at RM1.83 (R1) and RM1.95 (R2), with support located at RM1.73 (S1) and RM1.62 (S2).

Source: Kenanga Research - 11 Oct 2016