DENKO (Not Rated)

• DENKO jumped 15.0 sen (8.33%) yesterday to reach RM1.95.
• Yesterday’s move marks second straight days of gains and also accompanied by strong trading volume.
• Momentum indicators such as the MACD already turned positive and we believe that the share is poised to punch out from a year-long consolidation phase.
• Watch for a breakout above the RM1.97 (R1) resistance level, which would signal further gains towards R2 at RM2.16.
• Downside support levels, however, can be found at RM1.66 (S1) and RM1.35 (S2).

PCCS (Not Rated)

• PCCS jumped 2.5 sen to RM0.355 (7.6%) yesterday, accompanied by high trading volumes.
• Technical outlook is positively biased with display of “dragonfly doji” on 16-Jan followed by bullish price advancement yesterday.
• MACD is in positive state as the indicator is leading its Signal Line.
• From here, share is in the midst of retesting 50.0% Fibonacci derived resistance at RM0.355 (R1).
• A decisive break above R1 will likely see further advancement towards RM0.395 (R2).
• Downside supports can be found at RM0.315 (S1) and RM0.265 (S2).

Source: Kenanga Research - 19 Jan 2018