WIDAD (Not Rated)

• WIDAD gained 1.5 sen (+5.17%) to close at RM0.305 yesterday, accompanied by higher-than-average trading volume.
• Overall, the technical outlook is positive as the share has just broken above all key SMAs.
• This may potentially signal more upward movement as we note there was a rally that happened in September 2018 previously after it broken past all key SMAs.
• From here, expect the share to test its next resistance at RM0.350 (R1) and even RM0.400 (R2).
• Conversely, downside supports can be identified at RM0.250(S1) and RM0.220 (S2).

D&O (Not Rated)

• D&O declined by 2.5 sen (-3.47%) to close at RM0.695 below its 20-day SMA.
• The share has been on a downtrend since early-October and we believe the selling momentum is yet to be over as key technical indicators remain lacklustre.
• We note that shorter-term SMAs are trading below longer-term SMAs. Coupled with the formation of a third consecutive bearish candlestick, we believe there are more downsides.
• Immediate support levels can be identified at RM0.675 (S1) and RM0.610 (S2).
• Conversely overhead resistance is seen at RM0.735 (R1) and RM0.770 (S2).

Source: Kenanga Research - 23 Jan 2019