KRONO (Not Rated)

• Yesterday, KRONO dropped 0.5 sen (-0.71%) to close at RM0.700.
• Technically, the share seems to be consolidating to form a potential ascending triangle. Notably, the 20-day SMA recently crossed above both the 50-day and 100-day SMA which could indicate a shift in sentiment. Key momentum indicators are also displaying positive signals.
• We expect KRONO to retest its resistance of RM0.720 (R1), if successful would signal a breakout and a further advancement to RM0.800 (R2).
• Downside risk is fairly limited with a support level at RM0.640 (S1). A close below (S1) would invalidate the potential ascending triangle setup, with a lower support identified at RM0.545 (S2).

KPJ (Not Rated)

• KPJ gained 6.0 sen (+5.77%), closing at RM1.10, on increased trading volume with 17.1m share exchanging hands- tripled its 20-day average.
• Yesterday’s move saw KPJ broke out from RM1.07 prior resistance level with the formation of bullish “Marubozu” candlestick.
• Trend line is bullish since early April with key SMAs remain in “Golden Cross” while momentum indicators (MACD, RSI and Stochastic) displaying minor upticks.
• Technical outlook will turn increasingly positive once the RM1.15 (R1) resistance level is taken out decisively before a possible advancement towards RM1.20 (R2).
• Conversely look out for a crucial support at RM1.00 (S1), with a lower support level seen at RM0.955 (S2).

Source: Kenanga Research - 3 Aug 2018