VELESTO (Not Rated)

• VELESTO gained 2.5 sen (+8.93%) yesterday to close at RM0.305 on higher-than-average trading volume.
• Since February, the share has been on an uptrend in tandem with the formation of two “Golden Cross” as its 20-day SMA crossed above both its 50 and 100-day SMAs.
• The upticks seen in key momentum indicators might be indicating more upside.
• Should the buying momentum persist, we believe resistance to be at RM0.340 (R1) and RM0.395 (R2).
• Conversely, any downside should see support levels at RM0.230 (S1) and RM0.185 (S2).

JAKS (Not Rated)

• Yesterday, JAKS rose by 2.5 sen (+3.31%) to close at RM0.780.
• Chart-wise, the share began to recover since the end of last year and eventually broke past the previous downtrend in March 2019 on the back of stronger-than-average trading volume.
• Notably, the share is currently trading above all its SMAs as it closed above its 100-day SMA five days ago, signalling strong buying interest.
• From here, follow through buying may bring the share to meet resistance at RM0.935 (R1) and RM1.080 (R2)
• However, failure to do so, the share may find support at RM0.635 (S1) and RM0.530 (S2) further down.

Source: Kenanga Research - 13 Mar 2019