DSONIC (Not Rated)

• DSONIC climbed 6.5 sen (6.88%) yesterday to close at RM1.01, backed by higher-than-average trading volume.
• The spike in share price was likely due to investors optimism towards the announcement made last Friday about a RM270.7m contract awarded by the government to supply polycarbonate biodata pages.
• Technical outlook is increasingly positive with the share currently trading above both the 20- and 50-day SMAs, making good recovery from the sell-down that happened from January to end of March.
• From here, follow-through buying should lead share price trending towards RM1.07 (R1) and RM1.14 (R2)
• Conversely, supports can be identified at RM0.910 (S1) and RM0.765 (S2).

GENM (Not Rated)

• Yesterday, GENM finished at RM5.30 – 22.0 sen higher (4.3%) and has seemingly broken above its downtrend line.
• Formation of a followed through “Bullish Closing Marubozu” candlestick after series of doji paints a more positive technical picture.
• MACD-Signal Line crossover alongside stronger trading volume within past few days is supportive of further buy in.
• Expect a recovery with resistances identified at RM5.50 (R1) and RM5.82 (R2).
• Support can be found at RM5.00 (S1) and RM4.60 (S2).

Source: Kenanga Research - 17 Apr 2018