Daily technical highlights – (JAKS, WCEHB)

JAKS (Not Rated)

• JAKS fell 1.5 sen (-1.52%) to end at RM0.975, yesterday.
• Chart-wise, the share has been on a rally since early-October 2019 after 5-6 months of consolidation and is currently trending above all key SMAs.
• However, given heavily overbought signals from RSI, we believe a consolidation phase (RM0.955-RM1.02) is likely to happen in the near term.
• Key support levels can be identified at RM0.955 (S1) and RM0.910 (S2). Conversely, resistance levels can be found at RM1.02 (R1) and RM1.09 (R2).

WCEHB (Not Rated)

• WCEHB fell 1.5 sen (-3.53%) yesterday to close at RM0.410.
• The share plunged after breaking below its previous support level of RM0.470. However, we opine that the decline away from its key SMAs is too steep and that a technical rebound should happen soon.
• We also note the formation of a “bullish pin bar” yesterday, signifying buying interest. Heavily oversold signals from RSI and stochastic seem to corroborate our view as well.
• Should a technical rebound happen, we look towards RM0.425 (R1) and RM0.470 (R2) as the resistance levels.
• On the other hand, any further downside should see support at RM0.390 (S1) and RM0.355 (S2)

Source: Kenanga Research - 16 Oct 2019