LUSTER (Not Rated). Yesterday, LUSTER’s share price gapped up at the opening, and continued to climb to its closing price of RM0.11. The share price ended the day up by 1.5 sen (+15.8%) on explosive trading volume of 87.9m shares. LUSTER had been trading within a downtrend channel for over two years. Nevertheless, the share price appears to have bottomed out in December, before finally breaking out of the crucial downtrend resistance in January. Additionally, the share price further broke out of its sideways consolidation zone between RM0.09-RM0.095 as a result of yesterday’s bullish move. Consequently, LUSTER’s overall technical picture has improved significantly, with bias now on the upside. From here, we see the potential for a retest of upside resistances RM0.12 (R1) and RM0.135 (R2) next. Downside support is located at the RM0.095-RM0.10 (S1) region, and RM0.08 (S2) just below.

WELLCAL (Not Rated). WELLCAL rose 5.0 sen (2.5%) to close at RM2.04 on the back of strong trading volume yesterday. The positive price action also saw the share price breaking above its resistance-turned-support level of RM2.02 (S1). MACD line is undergoing a bullish convergence on the back of a hook-up by daily RSI, reflecting the increasing buying interest on the stock. Should there be follow-through buying, WELLCAL could look to gear towards RM2.08 (R1) and possibly RM2.28 (R2) in the mid-term. On a side note, we observe that both RSI and Stochastic are venturing into the deep overbought state. Thus, we do not discount possibilities of the stock undergoing a consolidation stage to neutralise the aforesaid condition in the near-term. Support levels are noted at RM2.02 (S1)/RM1.88 (S2).

Source: Kenanga Research - 15 Mar 2017