UMW (Not Rated)

• UMW gained 7.0 sen (+1.22%) to close at RM5.82 yesterday.
• Chart-wise, the share has been on a rally since last year October and trading between a range of RM5.25 and RM5.90 for the past three months.
• Notably, the share is currently trading above all its longer-term SMAs, potentially signalling more upside room.
• Expect RM5.90 (R1) to act as the key resistance which will prompt the continuation of the rally should the share close above the level. The next resistance level is identified at RM6.30 (R2).
• Conversely, should the share fail to test the aforementioned key resistance level, immediate support levels can be found at RM5.55 (S1) and RM5.25 (S2).

REACH (Not Rated)

• REACH declined by 1.5 sen (-4.62%) to close at RM0.310 yesterday.
• The share has staged a rebound rally since mid-December 2018 reaching a high of RM0.345. However, we opine the rally to be short-lived given that yesterday’s candlestick represented a gapped down, signifying strong selling pressure.
• We also take note of the formation of a doji with a long upper tail close to the 100-day SMA which further indicates selling pressure. Couple with lacklustre signals from key momentum indicators, we believe REACH will trend lower.
• Immediate support level can be identified at RM0.285 (S1) and further down at RM0.245 (S2). Conversely, should buying momentum emerge, we look towards RM0.345 (R1) and RM0.380 (R2) to provide resistances.

Source: Kenanga Research - 24 Jan 2019