KAREX (Not Rated)

• KAREX gained 5 sen yesterday (5.88%), closing at RM0.900, backed by above-average trading volume.
• Chart-wise, the stock has been trading in a range between RM0.750 to RM0.850 for the past two weeks after a short rally in early June. Yesterday’s candlestick broke through its previous swing high resistance of RM0.850 which could signify a continuation of June’s rally.
• Momentum indicators continue to show meaningful upticks and the 20-day SMA has just crossed above the 50-day SMA yesterday for the first time since October 2017.
• From here, we expect the stock to face resistances at RM0.925 (R1) and RM0.995 (R2).
• On the other hand, supports can be identified at RM0.850 (S1) and RM0.750 (S2).

AEMULUS (Not Rated)

• AEMULUS jumped 5.0 sen to end at RM0.425 (+13.3%). This was accompanied by 16.6m shares being traded – quadruple the average volume of 4.0m shares.
• Yesterday’s “Opening Marubozu” candlestick displayed bullishness with the stock successfully closes above earlier resistances level of RM0.400.
• Technically, key SMAs have just completed a “Golden Crossover”, whilst momentum indicators are also showing upside-bias.
• Though the share is approaching a resistance at RM0.435 (R1), we foresee continued buying momentum could result in a R1 breakout, thus paving a further rally towards RM0.475 (R2) and RM0.520 (R3).
• Conversely, downside support can be identified at RM0.390 (S1) and RM0.345 (S2).

Source: Kenanga Research - 4 Jul 2018