AWC (Not Rated). Yesterday, AWC’s share price surged 4.5 sen (14.3%) to finish at RM0.845. Trading volume for the day spiked to almost six-fold its 30-day moving average (11.9m shares vs 2.1m). On the daily chart, AWC has broken out of a sideways range to signal a potential start of a new uptrend. The MACD has also been on a rising trend while the Stochastic indicator has hooked upwards to reflect the bullish view. From here, it is expected that the share price to be upside biased. The July's high of RM0.91 (R1) is the next major resistance to look out for. Should this level be taken out next, AWC would then have a clear path towards RM1.00 (R2) further up. Immediate support levels are RM0.80/0.78 (S1) although a break below would be highly negative with the next support only present at RM0.72 (S2).

AXIATA (Not Rated). After undergoing a correction phase over the past three months, AXIATA managed to garner some buying support near the RM4.50 (S1) level yesterday, rising 9.0 sen (1.98%) to close at RM4.63. Nonetheless, we observed that selling pressure has emerged towards the tail-end of yesterday’s session, leading to a formation of an long upper shadow candlestick. MACD histogram is still regressing further south, while there is yet any strong reversal signal displayed by the RSI and Stochastic. From here, AXIATA will need to recapture the RM4.85 (R1) level with conviction to end its downtrend pattern, before gearing higher up towards RM5.24 (R2) next. Meanwhile, downside support is located at RM4.50 (S1) followed by RM4.00 (S2).

Source: Kenanga Research - 16 Nov 2016