KOSSAN (Not Rated). Yesterday, KOSSAN gained 20.0 sen (2.8%) to close at a 12-month high of RM7.30. Buyers maintained control throughout yesterday, with the share forming a “white-Marubozu” candlestick, accompanied with above average trading volume. Yesterday’s move marked a decisive breakout from two weeks of sideways consolidation, as well as above its previous high at RM7.15. As such, we foresee the share to carry some upward bias, with the SMAs at a “Golden Cross” since June, as well as positive displays from key indicators. From here, expect the share to trend towards resistances at RM7.51 (R1) and RM7.73 (R2). Downside support can be found at RM6.79 (S1), and at RM6.57 (S2) further lower.

CHINWEL (Not Rated). CHINWEL gained 6.0 sen (3.2%) to close at its 52-week high of RM1.93. As a result of the strong move, the share price formed a “white-Marubozu” candlestick which indicates that the bulls dominated the day right from opening bell till market close. The move may possibly signal a resumption of the previous 3-month uptrend, which took a breather in early July. Yesterday’s decisive breakout was supported by strong volume with 2.4m shares traded. Further up, some resistance is expected overhead at RM1.95 (R1) although breaking beyond that, the next resistance is located at key psychological level of RM2.00 (R2). Any weakness back to the RM1.80 (S1) support levels may be viewed as a buying opportunity, failing which RM1.77 (S2) should offer additional support.

Source: Kenanga Research - 3 Aug 2017