EFORCE (Not Rated)

• EFORCE gain 0.5 sen (+0.79%) to close at RM0.640.
• Chart-wise, the share has been trending close to its 20 and 50 day SMAs indicating a consolidating phase.
• We note that the share tends to undergo a rebound rally after oversold signals from stochastic and currently, stochastic has shown oversold signals for a quite a period of time.
• As such, we expect the share to trend higher to test the resistance level at RM0.670 (R1) and RM0.745 (R2)
• On the other hand, support levels can be found at RM0.620 (S1) and RM0.580 (S2).

GADANG (Not Rated)

• Yesterday, GADANG gained 6.0 sen (+9.16%) to close at RM0.715.
• Chart-wise, yesterday’s candlestick formed a long bullish candlestick which punched above its 20-day SMA, indicating strong buying momentum
• Coupled with bullish crossover from the MACD indicator, we opine the rally is yet to be over.
• Should the buying interest persist, the key resistance levels to look out for are RM0.775 (R1) and RM0.845 (R2).
• Conversely, downside supports can be identified at RM0.660 (S1) and RM0.590 (S2).

Source: Kenanga Research - 9 Oct 2019