YTL (Not Rated)

• YTL jumped 5.0 sen to RM1.20 (4.35%) yesterday; decisively break away from the 38.2% Fibonacci level of RM1.15.
• The stock suffered a heavy two months sell down during the period of April to May 2018, before having to experience some recovery. Notably, the recovery has now displayed a formation of higher highs and higher lows.
• Technical outlook is improving with display of bullish crossover between 20- and 50-day SMA coupled with uptrending momentum indicators.
• From here, follow through buying may bring YTL towards RM1.30 (R1) and RM1.40 (R2) further up.
• Conversely, supports can be identified at RM1.15 (S1) and RM 1.06 (S2).

MPI (Not Rated)

• MPI gained 54.0 sen (5.32%) to close at RM10.70 yesterday.
• Chart-wise, the stock seems to have reversed in May 2018 after a downtrend since November 2017. Yesterday’s candlestick long candlestick closed above its recent swing high of RM10.66 indicating a breakout.
• However, we are cautious of the recent rally from previous days as they were not accompanied by an increase in volume. MACD line is still below the signal line and Stochastic is at an overbought level.
• Should the rally continue, we will look towards resistances at RM11.20 (R1) and RM12.00 (R2). Conversely, supports can be identified at RM9.55 (S1) and RM8.62 (S2).

Source: Kenanga Research - 13 Jul 2018