KLK (Not Rated)

• KLK gained 32.0 sen (+1.40%) to end at RM22.52.
• In early October, the share took a dip and trended below all key SMAs before starting the recent steady uptrend. Yesterday’s bullish engulfing candlestick showed positive signals that a reversal might happen soon.
• Furthermore, we believe the rally could persist given that upticks in key momentum indicators as they have bounced off from the oversold levels.
• From here, expect the share to test its overhead resistance at RM22.90 (R1) and RM23.40 (R2).
• Meanwhile, downside supports can be seen at RM21.60 (S1) and RM21.30 (S2).

JAKS (Not Rated)

• JAKS jumped by 20.0 sen (+17.20%) yesterday to close at RM1.36 on higher-than-average trading volume.
• Chart-wise, the share has been on a bullish run recently with prices trading above all key SMAs. Yesterday’s candlestick closed with a long bullish “Marubozu Candlestick” to a new high after March 2018.
• However, we are cautious and do not discount a possibility of a retracement as the RSI and Stochastic are in the heavily overbought zone.
• Hence, we expect the share to fall back to its support at RM1.15 (S1) and possibly RM0.95 (S2).
• Should the buying pressure continue, resistances can be found at RM1.45 (R1) and RM1.55 (R2).

Source: Kenanga Research - 15 Nov 2019