· WCT (Not Rated). Yesterday, WCT has bagged a RM323.0m construction job from Petronas which involves storm drainage work at Rapid. On its technical picture, WCT has been creating higher lows as it underwent a consolidation phase after touching the RM1.52 (R1) level. Trading volume has also been tepid recently, while the Stochastic indicator is on a downtrend towards its oversold region. We reckon that should the share price stage a breakout from its strong resistance level of RM1.52 (R1), WCT could poise to rally strongly towards RM1.70 (R2) next. Hence we advocate investors to look out for a spike up in buying interest in tandem with a bullish trend continuation signal from the Stochastic crossing over its downtrend resistance line.

· OLDTOWN (Not Rated). OLDTOWN’s share price has been trading within a medium-term rising channel as analysts foresee stronger growth numbers for their beverage manufacturing segment and a recovery in their coffee chain business. In fact, the share price is poised to continue its uptrend with yesterday’s high volume breakout of its congestion zone. The share price rose 5 sen to close at RM1.40 while the 14-day Stochastic indicator also issuing a buy signal. Hence, traders may consider buying now, with the channel resistance of RM1.50 (R1) being the immediate target. Further resistance is located at RM 1.70 (R2) while downside support levels are just below at RM1.35 (S1) and RM 1.27 (S2).

Source: Kenanga Research - 16 Dec 2015