SAPNRG (Not Rated)

• Yesterday, SAPNRG closed 3 sen higher (6.2%) at RM0.515 on high volumes, boosted by a short rally in the afternoon. This comes after the company announced bagging an EPCIC contract from Mubadala Petroleum during its mid-day break.
• Improved displays of key indicators (e.g. upticks in MACD and RSI) coupled with higher trading interests of late, as depicted by the increased volumes, could suggest the share is seeking a near-term rebound from its low of RM0.395 last week.
• However, underlying trends remain bearish, trading below the key SMAs, which are currently in a “Death Cross” state.
• Keen investors in seek of a rebound play should look to cut-loss if the share decisively breaks below aforementioned low of RM0.395 (S1).
• Conversely, should the rebound materialise, expect lucrative gains with resistances identified high up at RM0.80 (R1) and RM1.05 (R2).

IJACOBS (Not Rated)

• IJACOBS gained 3.0 sen (9.38%) to close at RM0.350, forming a white “Marubozu” candlestick backed by strong trading volume.
• Yesterday’s move resulted in a decisive breakout from its 3-month downtrend at RM0.340 strong resistance level; potentially serve as a signal of recovery play.
• Overall technical picture is positive with share price closing above the 20-day SMA combined with bullish upticks in key momentum indicators.
• Should a follow-through buying continue, IJACOBS could climb towards next resistance level of RM 0.380 (R1) and RM0.420 (R2) further up.
• Conversely, downside support levels are identified at RM0.300 (S1) and RM0.290 (S2) next.

Source: Kenanga Research - 22 Mar 2018