August 19: AmBank Research has highlighted two stocks with momentum based on technical charts.
JCY International Bhd
JCY International jumped and touched the 66.5 sen resistance level. With its 21-day moving average pointing upwards, coupled with a higher low candlestick pattern, we see that there is a possibility it will experience a technical breakout.
If this happens, expect it to travel towards the short-term target prices of 70 sen and 73.5 sen. The downside support is anticipated at 63.5 sen, whereby traders may exit on a breach to avoid the risk of a further correction.
Trading Call: Buy on breakout 66.5 sen
Target: 70 sen – 73.5 sen (time frame: 2-4 weeks)
Exit: 63.5 sen
Closing price: 66 sen (Aug 18)
Asia Poly Holdings Bhd
Asia Poly Holdings is poised to test the 44.5 sen resistance level. With higher trading volume sighted, coupled with its RSI indicator pointing upwards, we think that the bullish momentum will soon push towards the short-term target price of 48 sen followed by 52 sen.
In this case, the downside support is marked at 39.5 sen, whereby traders may exit on a breach to avoid the risk of a further correction.
Trading Call: Buy on breakout 44.5 sen
Target: 48 sen – 52 sen (time frame: 2-4 weeks)
Exit: 39.5 sen
Closing price: 43.5 sen (Aug 18)