· DSONIC (Trading Buy, TP: RM1.59). Yesterday, DSONIC climbed 1.0 sen or 0.68% higher to RM1.48. Share price has been in a consolidation mode over the past one month following the recent bull rally with the buying volume also seen taking a breather. Overall, the positive uptrend is still intact with the share price holding up above the bottom-support in the ‘symmetrical triangle’ chart pattern as well as all the SMA trend lines. The buying momentum has cooled off as showcased by both RSI and Stochastic indicators with the latter approaching oversold territory. Thus, we opine that it is a good entry opportunity taking advantage of the short-term weakness, in anticipation of a technical breakout from the ‘Symmetrical Triangle’ chart pattern. Hence, we issue a ‘Trading Buy’ call on DSONIC with a near-term Target Price envisaged at RM1.59 (R2) and possibly RM1.70 next (should the share price break out from the (R2) level) based on our measurement objective.

 · EWEIN (Trading Buy, TP: RM1.09). EWEIN surged 4.0 sen or 4.65% to RM0.90 yesterday on strong buying volume. The share price was observed trying to break out from its resistance level of RM0.90 (R1), while staying above all its SMA trend lines to indicate the uptrend movement. The bullish outlook is further evidenced by the MACD indicator while the positive buying momentum is showcased by both RSI and Stochastic indicators. If we observe the price movement over a longer term, the share price is looking to complete its ‘Rounding Bottom’ chart pattern by trending towards its 5-month’s peak of RM1.09. As such, we are issuing a ‘Trading Buy’ call on EWEIN with a near-term Target Price at its psychological RM1.00 (R2) level, while a strict stop-loss is set at RM0.845 (S2). 

Source: Kenanga Research - 29 Oct 2015