ESCERAM (Not Rated). ESCERAM closed at a fresh all-time high of RM0.605, gaining 5.0 sen (9.0%) for the day. Trading volume rose to 13.7m shares, compared to an average of 1.0m shares over the past 30 days. The share price has more than doubled from its RM0.27 low in August last year, and remains in long-term uptrend. As a result of the strong gains yesterday, the MACD has just crossed above the zero-line reflecting a pick-up in bullish momentum. From here, we expect follow-through buying to continue although at a more moderate pace over the next few days. The immediate resistance levels to look out for are RM0.68 (R1) and RM0.73 (R2) further up. The technical picture is deemed bullish until and unless the RM0.52 (S1) support is violated in a decisive manner. In the eventuality that S1 is broken, the next support is far below at RM0.445 (S2).

AWC (Not Rated). AWC recently secured a maintenance work contract for the Integrated Transport Terminal in Bandar Tasik Selatan (TBSBTS), which includes a fee of RM130.0m over a five-year period. Yesterday, AWC share price rose 2.0 sen (2.52%) to close at an all-time high level of RM0.815 on the back of strong trading volume. The overall underlying outlook is looking positive as the share price is currently trading above all its key SMA levels. Nonetheless, we observe that key momentum indicators are flattening out, especially the RSI and Stochastic which have waned out at their respective overbought zone. Besides, the long upper shadow formed by yesterday’s candlestick is also reflecting some selling pressure. From here, we advocate interested investors to await the share price to consolidate in the near-term around the RM0.80 mark to neutralise the aforesaid overbought condition before entering the stock. Resistances are seen at RM0.85 (R1) and RM0.89 (R2), while support levels are located at RM0.80 (S1) followed by RM0.72 (S2).

Source: Kenanga Research - 14 Jun 2016