SUNCON (Not Rated)

• SUNCON gained 10.0 sen (+6.02%) to close at RM1.76, as investors seemingly reacted positively to the announcement of a contract award.
• Overall technical outlook is positive as the share had recently broken above the RM1.60 resistance level, which was also where the 20-day SMA was hovering at.
• We believe that the share will likely trend further to the next resistance at RM1.95 (R1) and possibly RM2.10 (R2).
• Conversely, downside supports can be found at resistance-turned-support of RM1.60 (S1) and RM1.30 (S2).

KERJAYA (Not Rated)

• KERJAYA gained 6.0 sen (4.7%) to close at RM1.35.
• Yesterday’s bullish candlestick saw the share decisively closing above all the key moving averages possibly to signal more potential upside.
• Momentum indicators appear favouring the upside as displayed by the MACD bullish crossover and upticks seen in RSI and Stochastic.
• From here, should the buying momentum continue, we look towards resistance levels at RM1.45 (R1) and RM1.60 (R2).
• Conversely, support levels are seen at RM1.20 (S1) and RM1.00 (S2) further down.

Source: Kenanga Research - 21 Feb 2019