WELLCAL (Not Rated)

• WELLCAL jumped 4.0sen (2.56%) to close at RM1.60.
• Despite the market being in the red, the long white-candlestick with lower shadow and strong trading volume indicate strong buying interest.
• Momentum indicators are positive and are in a bullish convergence
• Expect WELLCAL to advance towards RM1.66 (R1) and possibly RM1.77 (R2) should R1 be taken out. Key support levels, however, can be found at RM1.55 (S1) and RM1.48 (S2).

SAPNRG (Not Rated)

• SAPNRG gained 1.5sen (2.13%) to end at RM0.720 after the company was awarded contracts worth RM905m on Monday.
• White candlestick with lower shadow indicates buying support.
• Potential rebound play amid waning bearish momentum and solid floor at RM0.665 (S1).
• Resistances at RM1.00 (R1) and RM1.20 (R2) offer meaningful upside potential of 38.9%-66.7% for bargain hunters.

Source: Kenanga Research - 7 Feb 2018