CSCSTEL (Not Rated). CSCSTEL had consolidated from its recent high level of RM2.23, finding some strong buying support at the psychological RM2.00 (S1) level. Yesterday, the stock rose 10.0 sen (5.05%) to form a ‘Marubozu’ candlestick to close higher at RM2.08. The outlook looks encouraging with the formation of a ‘Marubozu’ candlestick after a ‘Spinning Top’-like candlestick. Buying momentum is also observed to be piling up on the stock, depicted by the strong hook-up in both the RSI and Stochastic indicators. From here, CSCSTEL could look to gear further up towards RM2.10 (R1) and retest its previous high level of RM2.23 (R2) next in the near-term. Any breach above the R2 level would see the stock climbing further up towards RM2.40 (R3). Downside support is located at RM2.00 (S1) followed by RM1.85 (S2).

JAYCORP (Not Rated). Furniture maker JAYCORP rose 5.0 sen (3.55%) to close at RM1.46. Earlier in May, the share price broke out of its sideways trend at RM1.00 and has since been on a strong uptrend. Over the past month, JAYCORP staged a healthy pullback from a high of RM1.56 to as low as RM1.40. Nevertheless, the share price has begun to show signs of resuming its prior uptrend as a result of yesterday’s bullish move. In fact, the Stochastic indicator has also hooked upwards from oversold level to signal a possible start of the next up-cycle. From here, expect bias to be on the upside towards last month’s RM1.56 (R1) high. Should this level be taken out next, further gains would then be expected towards RM1.71 (R2). Downside appears limited with strong support at RM1.40 (S1), although a break below would be highly negative with further support only present at RM1.32 (S2).

Source: Kenanga Research - 9 Nov 2016