YKGI (Not Rated). YKGI gapped down 4.5 sen (14.3%) yesterday staging a breakdown from its ‘head and shoulder’ neckline support, closing lower at RM0.27 on high trading volume. Overall technical picture is looking bearish, with the underlying also breaking down below its 100-day SMA trend line. Besides, MACD histogram is also displaying a bearish convergence below the zero-line to reaffirm the bearish outlook ahead. We advocate investors not to catch the falling knife, as downside could likely be found further south towards RM0.25 (S1) and maybe RM0.20 (S2) based on the target measurement (shown on chart). Interested investors should adopt a more conservative approach by looking for any rebound signal around the RM0.20-RM0.25 zone before entering the stock. Overhead resistance is currently seen at RM0.28 (R1) and RM0.32 (R2).

WCT (Not Rated). Amid the turmoil yesterday, WCT’s share price plunged to a low of RM1.73 before clawing back losses to finish at RM RM1.80 (down by 3.0 sen or 1.6% for the day). On the daily chart, WCT’s overall uptrend remains intact with a strong intra-day rebound after a brief downside test of the 20-day SMA. Consequently, a bullish “Hammer Reversal” candlestick has taken shape to signal investors’ willingness to buy on dips. The MACD has also remained on a steady uptrend, and this reflects that momentum is still positive. From here, expect bias to be on the upside. Near-term resistances to look out for are RM1.93 (R1) and RM2.00 (R2). Downside support levels are RM1.73/RM1.74 (S1) where the 20-day SMA is located, failing which further support is anchored at RM1.65 (S2).

Source: Kenanga Research - 10 Nov 2016