TONGHER (Not Rated)

• TONGHER jumped 4.0 sen (+0.99%) to close at RM4.10.
• The share has been on an uptrend since April, with yesterday move saw the share closing above all keys SMAs.
• We remain cautious as momentum indicators still displaying some weaknesses as evidence by the downward movement in the MACD.
• We opine that the recent rally could be short-lived and may plunge to its support level RM4.00 (S1) and RM3.82 (S2).
• On the other hand, investors with position in the share could take profit if it hits resistances of RM4.22 (R1) and RM4.60 (R2).

KPJ (Not Rated)

• KPJ gained 2.0 sen (+1.89%) to close at RM1.08 yesterday.
• After the major sell-down that happened over the past few days, the share appears to have rebounded with meaningful upticks in the stochastic indicators.
• We believe that there may be a short-term rally to its resistance at RM1.10 (R1) and RM1.14 (R2).
• Should the rally be short-lived, downside supports can be identified at RM1.07 (S1) and RM1.03 (S2).

Source: Kenanga Research - 24 Oct 2018