JHM (Not Rated)

• Yesterday, JHM gained 8.0 sen (+6.84%) to close at RM1.25.
• Technically, the share has been on a downtrend for the past several months. However, recent technical outlook has started to improve with the underlying trend turning positive since the mid-last month. Key SMAs are in a ‘Golden Cross’ state and key momentum indicators continue to show positive signals.
• Expect JHM to test its resistance of RM1.30 (R1) and RM1.40 (R2) should the first resistance be taken out.
• Conversely, support levels can be identified at RM1.22 (S1) and RM1.17 (S2).

GTRONIC (Not Rated)

• Yesterday, GTRONIC gained 6.0 sen (+2.32%), to close at RM2.65.
• Technical outlook is seemingly positive after the share bottomed-out early April, transitioning into a bullish uptrend.
• Momentum indicators appear encouraging as displayed by the MACD above Signal-line, minor upticks in RSI and Stochastic as well as key SMAs remain in “Golden Cross”.
• Once RM2.70 (R1) is taken out decisively, expect a possible retest at the RM3.00 (R2) psychological resistance level.
• Downside risk is identified at the support level at RM2.50 (S1) where a break below would trigger a capitulation, with the share seeing a lower support at RM2.45 (S2).

Source: Kenanga Research - 7 Aug 2018