DSONIC (Not Rated)

• DSONIC gained 4.5 sen (+6.87%) to close at RM0.700 yesterday.
• Chart-wise, the share has been on a rally after breaking above its 100-day SMA in June-19. Yesterday’s candlestick saw a formation of a long upper wick, signifying selling pressure.
• Coupled with overbought signals from RSI and Stochastic indicators, we believe the share is likely to retrace.
• Immediate support levels can be identified at RM0.660 (S1) and RM0.615 (S2). However, should buying momentum continue, look out for resistances at RM0.730 (R1) and RM0.800 (R2).

GCB (Not Rated)

• Yesterday, GCB fell 12.0 sen (-3.36%) to end at RM3.45.
• The share has broken below its 100-day SMA for the first time since May-2018 and the share has failed to break above its 20-day SMA recently.
• We believe the tides have turned. Coupled with its 20 and 100-day SMAs in a “Death-Cross” formation, we believe the share is likely to trend lower.
• Fibonacci suggests support levels can be found at RM3.13 (S1) and RM2.78 (S2). Resistances, on the other hand, can be identified at RM3.55 (R1) and RM3.73 (R2).

Source: Kenanga Research - 4 Jul 2019