TNLOGIS (Not Rated)

• Yesterday, TNLOGIS gained 3.0 sen (+5.71%) to close at RM0.555.
• The stock formed a long bullish candlestick, punching above its 100-day SMA, which signals a breakout. Its 20 and 50-day SMA could be in the midst of a “Golden-Cross” formation as well.
• Coupled with encouraging upticks from key momentum indicators, we think that the share could trend higher.
• Fibonacci suggests resistances at RM0.590 (R1) and RM0.610 (R2). Conversely, downside supports can be seen at RM0.530 (S1) and RM0.510 (S2).

FOCUS (Not Rated)

• FOCUS closed 1.5 sen higher (+5.08%) to end at RM0.310, yesterday.
• The share has been an impressive rally since breaking above its 100-day SMA in late June 2019. However, we opine that the candlesticks have expanded far ahead of its SMAs (especially the 100-day SMA) and that there should be some consolidation/pull back.
• Coupled with the fact that both RSI and Stochastic indicators have displayed overbought signals since late June 2019 (close to a month now), we believe a consolidation phase/pull back is likely.
• Key levels of support can be identified at RM0.280 (S1) and RM0.250 (S1), which we believe could be attractive points for investors to take on a position.
• However, should buying momentum persist, overhead resistances can be seen at RM0.325 (R1) and RM0.370 (R2).

Source: Kenanga Research - 23 Jul 2019