KAWAN (Not Rated). KAWAN had recently consolidated after reaching a high of RM3.98 on the back of declining trading volume. Following the pullback, a bullish reversal ‘Morning Doji Star’ candlestick was formed yesterday to suggest that a rebound play could be imminent. The MACD indicator continued to maintain its bullish convergence to lend a hand on the bullish-bias. Besides, we also observed that the share price is well supported by its 20-day SMA level. Hence, interested traders could take this opportunity to enter the stock, with potential upside target set at RM4.50 (R3) in the mid-term.

SCIENTX (Not Rated). Yesterday, property developer-cum-packaging company SCIENTX saw its share price surging 49.0 sen (5.1%) to close at a fresh all-time high of RM10.18. The company had earlier last month reported its 1Q16 earnings, which doubled YoY and commented that its proposed acquisition of 326 acres of land in Pulai, Johor is expected to substantially boost the land bank of the Group over the medium-longterm. Chart-wise, SCIENTX has been on a medium-term uptrend since August last year. After a brief consolidation over the past two weeks, the share price broke above its previous high of RM9.94 yesterday to signal a continuation of its prior uptrend. From here, we expect a gradual incline towards the next resistance levels at RM10.70 (R1) and possibly RM11.16 (R2). Meanwhile, support can be found at RM9.94 (S1) and RM9.18 (S2).

Source: Kenanga Research - 13 Jan 2016