In this report, we are revisiting the stocks  that werehighlighted in our previous Daily Trading Stock reports. As  these stocks have  continued to garner marketinterest, we are  examining  their current technical picture andidentifying the new levels to be mindful of, including their price targets aswell as support and resistance levels. 

AirAsia:  Support broken. We previouslyhighlighted  the possibility of a returnof buying  interest at the 5-monthsupport line of RM3.55.  However, thisdid not happen and  the  violation of  the support level has  led to the deterioration of  its technicalpicture. This is in line with the declining 50-day MAV line, which has beenfalling for 4 months. The most oversold daily RSI since the rebound of Sept2011 gives a glimmer of hope for a possible short-term bottom. But a return ofupside bias can only be expected if the stock closes above the broken RM3.55,right where the 200-day MAV line is located, with a break of the 9-monthdowntrend line as the confirmation. Such a move will also avert a 'Death Cross',where the 50-day MAV line crosses below the 200-day MAV line, which is alonger-term bearish sign. Otherwise, the downside bias will stay as long as thestock fails to get back above RM3.55, and support is expected at RM3.10and  the Sept-low of RM2.70. A violationof RM2.70 will likely see the longer term trend move downwards.

Time dotCom:Support needs to hold. The 5-month rally that peaked in February appears tohave hit a snag. This was first signaled by the failure of the second attemptto break the RM0.78 resistance level, the gap of June 2011. The easing of the upwardmomentum is clearly shown in the daily RSI, where a 'Negative Divergence' hasformed. Therefore, the 3-month support level of RM0.68 has to hold to keep thecurrent rally intact. This will be in tandem with the most oversold RSI since Sept2011, with a close above the early March-low of RM0.72 increasing thepossibility that the RM0.78 resistance will be broken. However, a close belowRM0.68 for two consecutive days would likely see an extended correction of the5-month rally. Support is expected at the Fibonacci retracement levels of therally at RM0.60 and RM0.55. A close below RM0.55 will significantly diminishthe chances of an upward continuation

WTK Holding: At7-month high. This is one of the few stocks that are breaking higher lately.Its upward march has been sluggish since the Sept 2011 low, but an upward biasis present throughout  the past fewmonths as seen from the higher lows in Dec 2011 and March. The stock's slow andsteady upward move led to the violation of the 5-month resistance last Tuesday.It has not  surged in a dramatic fashionbut a close back above RM1.50 should see it moving higher. A 'Golden Cross',where the 50-day MAV line crosses above the 200-day MAV line (which is usuallya positive longer-term indicator), may also happen and help reinforce theupward bias. Thus, a purchase can be made on another close above RM1.50 with a closebelow  the February-low of RM1.33 asa  stop. An aggressive trade may evenexit on a close back below RM1.50.  A measuredmove based on the Dec-Feb rally could see the stock close the August gap ofRM1.75. However, the upward bias could be nullified if the stop is triggered,after which expect the stock to trade sideways instead.

Poh Kong:  Triangle correction.  The rebound in the broader market in Sept2011  brought this stock back to life.The 5-month rally that peaked in February enabled the stock to print a 3-yearhigh. It is also natural for a strong move to make way for a correction, whichis now entering into its third month. Nevertheless, the upward move is stillintact, judging from the rising 50-day MAV line but a slight negative bias isseen from the formation of  the  'Descending Triangle' pattern. Nonetheless,weakness is only confirmed if the support of RM0.54 is violated. Thus, anupward continuation is expected as long as the support holds, and a  purchase can be made above the  support level with a stop loss on close below it. A measured move target basedon the 5-mopnth rally could see the stock at RM0.76, provided that the recenthigh of RM0.60 is violated. Expect the price to trade lower should the stoploss  be triggered and strongsupport  lies at RM0.49, the 62% retracementof the Oct-Feb rally.

Source: OSK188