WCT (Not Rated). Yesterday, WCT saw its share price rising by 3.0 sen (+1.9%) to RM1.60. The share price has been trading within a mediumterm uptrend channel, rising from a low of RM1.10 (August 2015) to a recent high of RM1.72 (December 2015). Following a brief pullback over the past month, WCT’s share price appears to have bottomed out at RM1.48 last week (See Hammer Reversal candlestick - circled). In fact, the Stochastic indicator is showing a pick-up in buying momentum once again and we believe WCT is poised for a resumption of its uptrend. From here, expect the share price to retest the December high of RM1.72 (R1), before moving further towards the channel resistance at RM1.80 (R2). Meanwhile, strong support is expected at RM1.52 (S1) and RM1.44 (S2).

SUPERMX (Stopped-out @ RM3.07). Earlier this month, we recommended a Trading Buy on SUPERMX (report dated 7th Jan @ RM3.45) when the share price broke out of a “Bullish Flag” pattern. While we had anticipated a continuation of the prior uptrend, the share price had not performed to our expectations. Yesterday, the share price plummeted 22.0 sen (-7.0%) to RM2.91 as further strengthening of the Ringgit (RM4.20 at time of writing) took a toll on Rubber glove companies and export-oriented companies. As a result of the sharp downward move, our RM3.07 stop-loss level was triggered. The technical picture has also deteriorated significantly with the MACD and Stochastic indicators showing a pick-up in bearish momentum. Traders may consider selling on strength towards the RM3.10 resistance (R1). Further resistance is located at RM3.50 (R2) while support levels are RM2.90 (S1) and RM2.55 (S2).

Source: Kenanga Research - 29 Jan 2016