SCOMNET (Not Rated)

• SCOMNET gained 4.0 sen (+5.23%) to close at RM0.805 yesterday, backed by above-average trading volume.
• Chart-wise, the stock has been trending upwards since last year mid-December.
• Yesterday, the stock closed higher with the formation of a bullish candlestick. Given the uptick in the 20-Day SMA, which appears to be staging the formation of a “Golden Cross”, we thus expect the share to trend higher.
• From here on, overhead resistance can be seen at RM0.950 (R1) and RM1.05 (R2).
• Conversely, downside supports can be identified at RM0.725 (S1) and RM0.625 (S2).

KPJ (Not Rated)

• KPJ gained 5.0 sen (+5.15%) to close at RM1.02 yesterday.
• Chart-wise, the stock has been on an up-trend since last year early-October.
• Yesterday’s candlestick closed higher with the formation of a bullish candlestick, backed by an uptick in RSI and above average trading volume. Coupled with healthy key SMAs, we thus believe buying momentum will persist.
• Should buying momentum persist, overhead resistance are at RM1.06 (R1) and RM1.10 (R2).
• Conversely, support levels can be identified at RM0.990 (S1) and RM0.920 (S2).

Source: Kenanga Research - 29 Jan 2020