IJM (Not Rated)

• IJM gained 15.0 sen (+8.43%) yesterday to close at RM1.93.
• Yesterday’s candlestick saw IJM breaking through its previous swing high of RM1.88 and closed above the 50-day SMA on the back of exceptional trading volume indicating strong buying interest. The breakout coupled with positive signals from key momentum indicators suggest the possibility of a reversal happening.
• We expect IJM to test the resistance level of RM2.08 (R1). Should it break and close above this level, we look towards RM2.27 (R2) as the next resistance.
• Conversely, supports can be identified at RM1.88 (S1) and RM1.65 (S2).

WTK (Not Rated)

• WTK gained 3.5 sen (+6.0%) to close at RM0.615, with 0.8m shares exchanging hand, almost 4-folds its 20-day average.
• Technically, the recent rallies by WTK could suggest a downtrend reversal as the share appears to have bottomed out.
• Notably, yesterday’s close also marked the breakout from its consolidation range between RM0.550-0.600.
• Momentum indicators appear favouring the upside as displayed by the uptrend in the MACD and RSI.
• From here, look out for resistance level at RM0.620 (R1) where a decisive takedown would see the share advancing towards resistance RM0.665 (R2).
• Conversely, immediate support can be identified at RM0.575 (S1), with a stronger support lower at RM0.550 (S2).

Source: Kenanga Research - 20 Jul 2018