COMFORT (Not Rated)

• COMFORT jumped 3.5 sen (+3.89%) to close at RM0.935 last night.

• The share had been rallying as shown by the string of long white-candlesticks formed recently.

• However, we remain cautious as the stochastic indicator is in the overbought zone while a “Death Cross” has just emerged between the 20-day and 100-day SMA.

• Thus, we think the recent rally could be short-lived and may plunge back to its supports at RM0.860 (S1) and RM0.800 (S2).

• On the other hand, investors with position in the share could take profit if it hits resistances of RM0.980 (R1) and RM1.05 (R2).

UMW (Not Rated)

• UMW gained 17.0 sen (+3.75%) to close at RM4.70 yesterday on stronger trading volume.

• Chart-wise, the share appears to be recovering from the heavy sell-down since early September 2018.

• More notably, the bullish MACD crossover may indicate more upwards movements.

• From here, expect the share to test its next resistance level at RM4.85 (R1) while a break above R1 will see next resistance level at RM5.25 (R2).

• Conversely, downside supports are identified at RM4.40 (S1) and RM4.20 (S2).

Source: Kenanga Research - 23 Oct 2018