ZELAN (Not Rated). ZELAN’s share price rose 1.5 sen (10.0%) to a five-month high of RM0.165 yesterday, with 12.5m shares changing hands. The share price has been on a medium-term uptrend since December, having gained from a low of RM0.10. Concurrently, the key momentum indicators such as the MACD and RSI have both been on a rising trend for several months, and these signaled that the short medium term uptrend is a sustainable one. More importantly, yesterday’s bullish move resulted in a crucial breakout above the longer term downtrend line. With this significant victory for the bulls, we can expect bias to be on the upside towards RM0.185 (R1) and RM0.205 next. Downside support should be present just below at RM0.165 (S1) and RM0.13 (S2) further down.

JCY (Stopped Out). Recall that we previously issued a trading buy call on JCY (report dated 14th March 2017) after the share price has staged a breakout from its consolidation phase. Nonetheless, the share price failed to sustain its momentum as it regressed southwards to trigger our stop-loss level of RM0.595. MACD is still trending on its bearish convergence to lay a hand on the bearish-bias outlook ahead. Thus we are force to stop-out of the stock, and will relook for a more compelling technical picture to emerge.

Source: Kenanga Research - 30 Mar 2017