• Cworks Systems Berhad (CWORKS) is engaged in the provision of computerized maintenance management systems and other information technology services, such as systems integration, support services and training. Since 2013, the company incurred net losses. Hence, the surge in share price from low of RM0.165 on 14 Aug 2015 to recent high of RM0.38 could trigger concern about price sustainability. This is further compounded by grossly overbought MACD, RSI and Slow Stochastics indicators. In addition, the stock is also recording lower highs and lower lows, classis downtrend formation.
• Thus, we deem the stock as Trading Sell with an immediate support near RM0.33 (23.6% FR), RM0.30 (38.2% FR) and RM0.27 (50% FR).
• On the other hand, resistance levels are RM0.36, RM0.38 and RM0.395.

Source: Hong Leong Investment Bank Research - 5 Jan 2016