D&O (Trading Buy, TP@RM0.785 ; SL@RM0.59). &O surged 8.0 sen (13.79%) to stage a breakout from its ‘Pennant’ chart pattern, closing at RM0.66 yesterday. In tandem with strong trading volume, MACD line is also setting a higher high to lay a hand on the bullish-bias outlook ahead. With follow-through buying interest, D&O could look to trend further up towards RM0.70 (R1) and possibly our target price objective of RM0.785 (3.0 sen below RM0.80 (R2)) in the near to mid-term. Support levels are observed at RM0.62 (S1) and RM0.54 (S2), while our stop-loss level is placed 3.0 sen below the S1 level at RM0.59).

CHEEWAH (Not Rated). Yesterday, CHEEWAH’s share gap up at the opening and subsequently rose to an intraday high of RM1.56. At market close, the share price finished up 8.0 sen (5.5%) at RM1.54 with 0.8m shares changing hands (quadrupled the daily average this past month). From a charting perspective, CHEEWAH has broken out of its range-bound trend between RM1.15-RM1.30 earlier last month, and commenced an uptrend to as high as RM1.47 before pulling back in a meaningful way. As a result of yesterday’s bullish move, the share price has now broken out into a 12-month high. Momentum indicators have turned bullish. Hence, we expect CHEEWAH to be positively biased from here. Overhead resistance levels to look out for are RM1.62 (R1) and RM1.75 (R2), while downside support levels include RM1.41 (S1) and RM1.34 (S2).

Source: Kenanga Research - 17 Mar 2017