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JKH COMES TO THE RESCUE AGAIN!!

After testing 270 levels which is the last pivot high and resistance level (indicated in the last report), JKH is seeing profit taking and could test 260-265 levels. It is absolutely imperative that JKH does not trade into the 255 levels on a closing basis as that would indicate that this uptrend is in fact corrective within a larger downtrend. If JKH trades at or below 255, the stock could retest its 52 week low of 240. From a confirmation point of view we need an impulsive 5 wave rally back above 273 to turn bullish on the on JKH. Potential short term targets for a fifth wave are 277 and 285. If we get a confirmation of a five wave rally from 240 levels it would be reasonable to assume from a technical point of view that JKH could test 290-300 levels again. We will update you periodically on the progress this stock makes as it effect on the market is significant. (Please refer to Figure 1)

Figure 1 JKH DAILY CHART


CAL Securities Level 5, Millennium House, No.46/58, Nawam Mawatha, Colombo 2 Tel: +94 11 231 7778 Email: vimal@capitalalliance.lk Technical Analyst Vimal Ramchandani

See page 3 for important disclaimer mportant disclaimer

The technical team at CALP indicated in its previous quarterly update (BULL IN THE WINGS, 9 July 2013), that 240 was a significant support level for JKH with the 200 day moving average and trend line providing support. We had mentioned that, It would not be a bad idea at all to open trading positions if JKH were to test these levels. Since July 9, JKH has gained 12.5% and has been one of the best performing stocks in the market. In fact it is the very reason that the market has recovered from 5950 levels. In regards to the entire stock market, we didnt forget to mention in our last update that The likely worst case scenario for wave 5 on this decline would be around 5900 levels. The technical configuration remains negative as long as prices remain below the resistance and prior pivot high of 6165 (reached on 2nd July 2013). The market is above the 6000 levels and could see more upside if JKH can hold above 255. Please note that CAL Research maintains a SELL on JKH from a fundamentals point of view.

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