PWORTH (Not Rated). Yesterday, PWORTH rallied to a high of RM0.255 before finishing off-best at RM0.24 - still up by 4.0 sen (20.0%) for the day. Chart-wise, its trend short to medium term trend is positive, with key SMAs fanning out. The share price had earlier last month broken out at RM0.11 and subsequently ran up to as high as RM0.22 before consolidating. However, with yesterday’s bullish move, the share price has confirmed a “Bullish Flag” pattern which signals a resumption of its prior uptrend. Key momentum indicators such as the MACD and RSI have also hooked upwards as a result, and this reflects a sudden pick-up in buying momentum. With these, we expect the share price to climb towards RM0.24 (R1) before testing the Sep-2014 high of RM0.285 (R2) fairly soon. Downside support should be present between RM0.21-RM0.22 (S1), although a move below RM0.18 (S2) would raise a red flag for us.   

WCEHB (Not Rated). WCEHB’s share price rose to a fresh six-year high yesterday, after the share price closed 6.0 sen higher (4.5%) at RM1.38. Until recently (January), WCEHB broke out of its sideways trend and subsequently rallied to a high of RM1.35 before staging a meaningful pullback towards RM1.16. Subsequent attempts to challenge the RM1.35 high were met with strong resistance. Nevertheless, the share price had finally punched through this crucial level as a result of yesterday’s bullish move – confirming an “Ascending Triangle” pattern in the process. From here, expect the share price to be positively biased towards the next resistance levels RM1.46 (R1) and RM1.52/RM1.55 (R2) where the measurement objective is located. Any return to the RM1.35 (S1) resistance-turned-support may offer a buying opportunity, while a move below RM1.31 (S2) would be a huge negative.

Source: Kenanga Research - 12 Apr 2017