SKPRES (Not Rated)

• SKPRES gained 3.0 sen (+1.97%) yesterday to close at RM1.55.
• Technically, the stock has been trading within a range of RM1.36 to RM1.62 since April 2018.
• The recent rally in prices accompanied by increasing trading volume and positive signals from key momentum indicators could be an early signal of an impending breakout.
• We expect SKPRES to test its first resistance of RM1.62 (R1). Should it break and close above this level, we deem that a breakout has occurred, and we look towards RM1.72 (R2) as the next resistance.
• Conversely, supports can be identified at RM1.48 (S1) and RM1.36 (S2).

K1 (Not Rated)

• K1 gained 1.0 sen (+5.0%) to close at RM0.210, with 4.6m shares exchanging hand, almost 3-folds its 20-day average.
• Technically, the share has been enjoying a steady uptrend since early April, continuously leading key SMAs upwards, with MACD in a bullish convergence.
• From here, look out for the coming few days if the share manages to retest its next overhead resistance RM0.220 (R1). Should it be decisively taken out, it could pave a clear path towards RM0.240 (R2).
• Conversely, immediate support can be identified at RM0.200 (S1), with a stronger support lower at RM0.185 (S2).

Source: Kenanga Research - 19 Jul 2018