JHM (Not Rated). JHM has been retracing from its all-time high level of RM4.45 over the past week on profit taking, after it underwent a strong rally since March 2016. Nonetheless, the stock has garnered investors' interest again yesterday after news reported that its diversification into the LED lighting is bearing results. As a result, the stock rebounded 43.0 sen (11.59%) to close at RM4.14 yesterday. Daily RSI and Stochastic have shown upticks to reflect the resurgence of buying interest, albeit on a milder tone (as showcased by the low trading volume) and both are still overbought at this juncture. Should there be follow-through buying interest, upside potential could be seen at RM4.45 (R1) followed by RM5.00 (R2) further up. Failure to ride on the reversal play will see the stock consolidate further, where support levels are spotted at RM3.60 (S1)/RM3.20 (S2).

ANZO (Stopped Out @ RM0.465). Recall that we had previously issued a Trading Buy call on ANZO (report dated 13-April 2017), after the share price rallied to break out from its ‘Bullish Pennant’ chart pattern. Nonetheless, the share price failed to follow through on the bullish trend as it faced heavy sell-down by investors yesterday, despite its recent announcement of a potential RM1.2b deal. The sell-down led the stock to tumble 19.5 sen (35.14%) to close at RM0.36, triggering our stop-loss level of RM0.465 yesterday. Thus, we are forced to cut our losses on the stock and will look out for any compelling re-entry again.

Source: Kenanga Research - 18 Apr 2017