AJIYA (Not Rated). AJIYA shot up 8.0 sen (13.7%) yesterday to close at RM0.665. Technically, AJIYA’s overall trend is bearish, with all 3 key SMAs in a “Death Cross”. Nevertheless, the steep declines over the past month appear to be overdone and the share price now appears to be staging a relief rebound. Notice that the MACD has just managed a Signal line crossover, while the RSI has also inflected from oversold levels as a result of yesterday’s bullish move. Hence, we expect the recovery to continue, at last to RM0.70 (R1) and possibly RM0.75 (R2). Light support should be present at RM0.65 (S1). Failing which RM0.575 (S2) should see more pronounced bargain hunting activities.

MIKROMB (Not Rated). MIKROMB’s share price climbed for a third-straight day, after the company announced its 1Q17 earnings, which showed a +14.4% YoY revenue growth and +5.4% YoY bottomline improvement. Yesterday alone, the share price was up by 3 sen (+6.3%) to RM0.51. From a charting perspective, the share price has broken out from a downward consolidation (Sep-Nov) on high volume. This signals that investors have turned bullish on the stock after staying sidelined for the last 3 months. Likely-wise, the MACD has now crossed above the Zero-line which indicates a shift in momentum from bearish to bullish. From here, we expect the share price to retest its September high of RM0.525 (R1). Should this level be taken out, further gains may then be expected towards RM0.545 (R2). Any weakness towards RM0.495 (S1) would present a buying opportunity, although a violation of the RM0.465 (S2) support further down would be a huge red flag.

Source: Kenanga Research - 6 Dec 2016