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JCY International
Berhad
JCY International's (JCY) share price has had a strong rally
since its October lows of 39 sen. On the daily chart, the share price is
currently facing strong resistance at the RM1.57 level, after testing this
level on four separate attempts. With an ascending triangle apparent, the price
action is fast approaching the apex, indicating a breakout in either direction
in the coming days is highly probably. Should an upward breakout occur, the
next level of resistance is likely to be at the early- May high of RM1.65, and
subsequently, towards the measurement objective of RM1.80. On the flipside,
initial support is provided at the upward sloping trend line at RM1.52 as well
as the 20 and 50-day SMA at RM1.50/48.
On the weekly chart, JCY has formed a clearly defined
uptrend since it made its lows in October. Besides, with the share price still
a fair distance above the 20 and 50-week SMA, the underlying uptrend is still
valid despite the MACD levelling out. We will, however, tread cautiously as the
direction could swing either way from here. A breach below the support line at
RM1.52 could indicate the end of the rally while a breakout above the RM1.57
level could potentially signal the next leg of the up-wave.
Source: Kenanga
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