FAJAR (Not Rated). FAJAR’s share price finished at RM0.785 with a 5.0 sen (6.8%) gain on high trading volume of 8.0m shares. Chart wise, FAJAR’s short and longer-term trends are positive with the volume indicator showing signs of a healthy uptrend for both time frames. Consequent to yesterday’s bullish move, FAJAR’s share price has broken out of its mild consolidation phase, and is now in the midst of retesting its March high of RM0.79. Should this level be taken out next, FAJAR would then have a clear path towards the next resistance at RM0.81 (R1), RM0.84 (R2) and possibly RM0.84 (R3) next. Downside Is capped at the reaction low of RM0.715 (S1), although a break below would be highly negative for the stock with the next key support only present at RM0.635 (S2).

KGB (Take Profit @ RM0.63). Recall that we previously issued a technical buy call on KGB (report dated 7 March 2017), after the share price staged a technical breakout of bullish ‘Flag-like’ chart pattern. Since then, the share price had trended up strongly and eventually surpassed our target price objective of RM0.555. Recently, there was a formation of a ‘Gravestone Doji’ at the peak of its recent rally, suggesting that a bearish reversal could be in play. Besides, daily RSI and Stocahstic have been in deeply overbought condition for a prolonged period of time, laying a hand on the possibility of the share price taking a breather soon. That said, we opt to take this golden opportunity to lock in our profit of 35.5% and re-look for another compelling re-entry again.

Source: Kenanga Research - 7 Apr 2017