Daily technical highlights – (QL, SCIENTX)

QL (Not Rated)

• QL rose 12.0 sen (+1.60%) to close at RM7.53.
• Technically, the stock has been trending sideways for a nine-month period since early this year, coupled with thinner trading volume.
• However, the stock started a rally in early September and its recent share price movement saw it breaking above all key SMAs along with yesterday’s formation of a white “Marubozu” candlestick.
• We believe the stock is likely to continue its rally and test its immediate resistance at RM7.70 (R1), where a break above could push the stock towards its next resistance at RM8.00 (R2).
• Should there be negative news flows, its downside supports can be identified at RM6.70 (S1) and RM6.00 (S2).

SCIENTX (Not Rated)

• SCIENTX gained 10.0 sen (+1.10%) to close at RM9.43 yesterday.
• Chart-wise, the trend line has been bullish since September, with the stock currently closing above all key SMAs. Moreover, we observe a breakout from the recent bullish flag pattern, signalling a continuation of the upward trend.
• Momentum indicators are mostly leaning on the upside-bias as displayed by the strong upwards movement in the MACD, RSI and Stochastic.
• Should the buying momentum sustain, we expect the stock to advance towards RM9.80 (R1) and RM10.00 (R2).
• Conversely, its immediate support levels can be seen at RM8.90 (S1) and RM8.60 (S2).

Source: Kenanga Research - 11 Dec 2019