MENANG (Not Rated). Yesterday, MENANG rose 7.0 sen (10.5%) to close at RM0.735 on the back of strong trading volume. The share price managed to stage a strong rebound play from its support line of RM0.64 (S2) to stage a breakout from its downtrend resistance line. Strong uptick in the RSI indicator is reflecting the resurgence of buying interest on the stock. Should follow-through buying interest persist, MENANG could look to test its immediate resistance level of RM0.76 (R1) and possibly rally towards RM0.80 (R2) next. On the flip side, we do not discount that yesterday’s strong showing could be overdone and induce profit taking by traders. If that occurs, the share price could look to retrace towards RM0.72 (S1) and possibly RM0.675 (S2) next.

WILLOW (Not Rated). WILLOW rose 5.5 sen (7.6%) yesterday to close at RM0.775 with 1.1m shares changing hands- the highest trading volume in five months. Overall, WILLOW has been trading within a downtrend over the past year. However, the technical picture is beginning to improve. Yesterday, the share price formed a Bullish “Marubozu” candlestick, indicating that buyers held the court from the opening bell to the close of the day. In addition, the 20-day SMA had also completed a “Golden Crossover” with the 50-day SMA earlier last week. Combined, these indicate that the bullish momentum is likely to continue in the coming days. From here, expect a move to retest the Nov-2015’s high of RM0.825 (R1). Should this level be taken out, the next level to look out for is located at RM0.88 (R2). Downside support levels are RM0.72 (S1) and RM0.68 (S2). 

Source: Kenanga Research - 12 Apr 2016