JCY (Trading Buy, TP@RM0.71 ; SL@RM0.595). JCY saw its share price climbing 2.5 sen (4.03%) to close at RM0.645 on strong trading volume. The bullish price action yesterday has led the share price to break out from its 1.5-month consolidation phase while settling above all its key SMA trend lines. MACD line is looking to stage a bullish crossover above its signal line to lend a hand on the bullish-bias outlook ahead, while positive uptick in daily RSI is indicating improved buying interest on the stock. From here, we reckon the immediate-term outlook to be biased to the upside, where a swift recapture of the immediate resistance level of RM0.655 (R1) would see the stock gear towards our target price objective of RM0.71 (3 bids below our measurement objective of RM0.725 (R2)). Key support levels to note are RM0.62 (S1)/RM0.58 (S2), where our conservative stop-loss level is placed at RM0.595 (3 bids below S1).

POHUAT (Not Rated). POHUAT saw its share price surging 13.0 sen (7.0%) yesterday to finish at RM1.98. Trading volume was explosive, with 2.3m shares changing hands – more than six-fold the daily average. From a technical perspective, the share price has broken out of is sideways consolidation band between RM1.79-RM1.88. Simultaneously, the MACD has also crossed above its Signal line, while the RSI has hooked upwards to reflect the sudden shift to bullish momentum. From here, we expect POHUAT to retest its December 2015 highs of RM2.12 (R1). Should this level be taken out next, further gains would then be expected towards RM2.29 (R2). Downside support appears solid at the aforementioned RM1.79/ RM1.88 (S1) levels, although a break below would be highly negative with the next major support likely to only emerge at RM1.70 (S2).

Source: Kenanga Research - 14 Mar 2017