LEWEKO (Not Rated) LEWEKO’s share price surged to the highest level since July-2015 yesterday, with a 2.5 sen gain (11.1%) to the RM0.25 closing price. Trading volume spiked to 10.9m shares for the day. Chart-wise, LEWEKO had been range-bound between RM0.10- RM0.15 for most part of last year. However, the share price finally broke out of this range earlier this month, and subsequently rallied to a high of RM0.24 before pulling back slightly. Yesterday, the share price further broke out of its brief two-week pause to confirm a “Bullish Flag” continuation breakout. From here, we expect further gains over the coming weeks towards immediate resistances RM0.275 (R1) and RM0.315 (R2) before finally reaching the “Flagpole” measurement objective of RM0.335. Any return to the RM0.235 (S1) support can be viewed as a buying opportunity, although a break below the RM0.20 (S2) level would be highly negative for the stock.

MALTON (Not Rated). MALTON has been consolidating over the past month to neutralise its deeply overbought condition, emerging from a strong rally since the start of the year. Yesterday, the share price regained strong buying interest to surge 13.0 sen (10.4%) to stage a breakout from its ‘Flag’–like chart pattern, closing at RM1.38. With the uptick displayed by RSI and Stochastic, MALTON could look to retest its previous high level of RM1.46 (R1) before gearing up towards RM1.70 (R2) next. Downside supports are noted at RM1.26 (S1)/RM1.13 (S2)

Source: Kenanga Research - 31 Mar 2017