Earlier this month, WCT broke out of an “Ascending wedge” pattern amid an increase in trading volume. In the subsequent weeks, the share price had gained a further 10% to RM 2.72, before staging a mild pullback. Of particular interest to us is that a secondary “Bullish Flag” (*circled) has taken shape on the daily chart, and yesterday’s 12 sen advance marks a resumption of the bullish uptrend towards RM3.00 and possibly RM3.16 next. Indicator-wise, the MACD indicator is showing signs of bullish convergence with the overall uptrend, and we believe that it is supportive of a move higher. As such, we suggest that traders buy in now with a RM3.13 target (this is 3 bid below the RM3.16 resistance), while a stoploss of RM2.50 should be placed.

 

Source: Kenanga