TAANN (Not Rated). Earlier this month, TAANN broke out of a “Symmetrical Triangle” (11 Nov at RM3.60) and subsequently rallied to a high of RM3.85 over the following 3 days. The share had since retreated back to the former triangle resistance-turned-support at RM3.60. Nevertheless, renewed buying interest emerged yesterday (albeit brief), as seen by yesterday’s intraday spike up to RM3.77 before finishing at RM3.70 (up by 3 sen or 0.8%) for the day. From here, expect bias to remain on the upside towards the recent high of RM3.85 (R1) and RM3.94 (R2) further up. Any weakness towards RM3.60 (S1) can be viewed as an opportunity to collect. Nonetheless, a decisive break below the RM3.43 (S2) support will be negate the bullish trend.

JERASIA (Not Rated). JERASIA surged 6.0 sen (10.81%) to breakout from its ‘Flag’ chart pattern, settling at RM0.615 yesterday albeit on a low trading volume. Upticks seen by RSI and Stochastic are indicating that the bulls has started to take charge, shifting away from the bearish trend previously. MACD histogram is also looking to stage a bullish crossover above the zero-line, while a ‘Golden Cross’ has taken place recently to lay a hand on the bullish-bias outlook ahead. Shall the stock manage to garner follow through buying interest, JERASIA could look to gear towards RM0.63 (R1) before retesting its multi-month high level of RM0.70 (R2). Any convincing breakout above the R2 level would see the stock setting sights towards the ‘Flagpole’ measurement objective of RM0.745 (R3) in the near-to-mid term. Key support levels are tied at RM0.60 (S1) followed by RM0.555 (S2).

Source: Kenanga Research - 25 Nov 2016