DUFU (Stopped-Out @ RM1.37). Recall that last month, we recommended a Trading Buy on DUFU (report dated 1-June) after the share price confirmed a bullish “Hammer” reversal candlestick. Although the subsequent few days saw follow through buying, the gains proved to be short-lived with DUFU slipping into a downward consolidation. Yesterday, the share price deteriorated further by staging a consolidation breakdown on increased volume. With the bearish move, the share price has triggered our stop-loss at RM1.37 while the technical picture is signalling a heightened risk of capitulation towards RM1.26 (S1). Further resistance is located at RM1.15 (S2) while overhead resistance levels are RM1.40 (R1) and RM1.57 (R2).

WANGZNG (Not Rated). WANGZNG’s share price rallied 9.0 sen (6.0%) yesterday to a closing high of RM1.58. Historically a quiet stock, trading activity in the shares roared to life earlier last month after the company announced that it had received an unconditional mandatory takeover offer from Hengan (Malaysia) Investment Co Ltd. In the following days, the share price climbed from RM1.14 to as high as RM1.70 before consolidating downwards. Nevertheless, yesterday’s bullish move triggered a breakout of a “Bullish Flag” pattern. This signals that the share price is poised to resume its prior run after a brief pause. From here, we reckon the share price will retest its recent high of RM1.70 (R1), before charting further gains towards the measurement objective of RM2.00/2.01 (R2) next. Downside support levels are RM1.45 (S1) and RM1.23 (S2) below.

Source: Kenanga Research - 6 Jul 2017