Kenanga Research & Investment

Daily Technical Highlights – JAYCORP | JAKS

Publish date: Tue, 22 Dec 2015, 09:19 AM

· JAYCORP (Trading Buy, TP: RM1.38). Shares of furniture maker JAYCORP rose 9.0 sen (+7.9%) to close at RM1.23 yesterday. The share price has been on a short-term uptrend over the past two months supported by its 1Q16 result showing a 371.9% YoY earnings surge. Chartwise, JAYCORP has broken out of an “Ascending Triangle” pattern to signal a continuation of its uptrend. At the same time, the MACD has just confirmed a bullish crossover to reflect a pick-up in momentum. Hence, we expect the share price to climb towards the RM1.41 measurement objective over the next few weeks. Traders may consider buying now with a target price of RM1.38 (3 bids below measurement objective). A stop-loss should also be placed just below the RM1.18 (S1) support level at RM1.15.


· JAKS (Not Rated). JAKS has been trading range-bound within RM1.07-RM1.24 for over the past 3 months. Yesterday, the share price staged a technical breakout from its multi-month resistance turned support level of RM1.24 on the back of strong trading volume. The underlying outlook is bullish, as the share price is currently trading above all its key SMA levels. Indicator-wise, the MACD has staged a bullish crossover of its signal line for the first time since 3 months ago to reinforce the positive outlook. Should follow through buying interest continue to pile up, we view that the share price could retest its immediate resistance level of RM1.36 (R1) and possibly RM1.44 (R2) next. Meanwhile, immediate support is marked at RM1.24 (S1) and RM1.11 (S2), respectively.

Source: Kenanga Research - 22 Dec 2015

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