Feb 26, 2015

JAKS - Technical Analysis

Last Price: RM0.61 +0.025             Support Level: RM0.575, RM0.545
Resistance Level: RM0.625, RM0.665, RM0.695, RM0.73, RM0.75, RM0.81, RM0.85
Entry Level: RM0.61 – 0.62

Jaks Daily Chart


Technical Analysis

JAKS (4723) rebounded strongly from its intra-day low of 0.575 to close higher at 0.61 after hitting the intra-day high of 0.625. Technically, the chart of JAKS formed a bullish white candlestick with increasing volume, indicating strong buying interest came into the stock yesterday. It breaks out from the consolidation range forming a Flag pattern breakout. MACD climbed upward and the histogram also extended upward, indicating an increased in momentum to the upside and a buy signal. RSI (14) rose to 73.8 from 69.4, indicating the stock is turning bullish. Stochastic hooked down slightly to 87.1 from 88.1, indicating mild pullback but the short term up cycle is intact. The medium and long term trend of JAKS is up and the short term trend has turned up with the 5-day SMA staying above the 10-day SMA and also staying above the 30-day SMA, and a confirmed breakout above RM0.625 will see an upside target of RM0.665, follow by RM0.695, RM0.73, RM0.75, RM0.81, and RM0.85.

Since the short term trend is bullish, day traders with shorter time frame perspective may ride on the short term bullishness and buy on breakout level (RM0.625). Those with lower risk appetite should wait at the side-line and buy on the dip.

Price Objective

Short Term – target price at (RM0.665, RM0.695, RM0.73), stop loss (RM0.57)
Mid Term – target price at (RM0.75, RM0.81, RM0.85), stop loss (RM0.54)

by SJ Securities 25/02/15

The Company is principally engaged in investment holding. The principal activities of its subsidiaries are General contract supply of building materials; Manufacturing and trading of steel pipes steel hollow section and trading of other steel related products.