Trend Spotter - KJTS Group Berhad

Trend divergence spotted. We noticed KJTS’s RSI had been trending positively and showing a weakening selling momentum, while a consolidation pattern can be seen for the past 20 trading days. This could be an indication where KJTS could challenge RM0.625(R1) and RM0.655 (R2) over the shorter term. Support wise, RM0.590 (S1) shows a very solid support backtested by multiple trading days. We see the consolidation as a good entry point as the cooling energy specialist has been securing contracts frequently.