WCE HOLDINGS BERHAD (Technical Buy)

• Following a two-week consolidation period, WCEHB showcased a Morning Star chart pattern in yesterday’s session, indicatingthe possibility of a shift from its earlier downward trajectory and aiming to surpass the upper consolidation boundary at RM0.675in the near term.

• From a technical standpoint, the stochastic oscillator, configured at settings 20,3,3, indicates an upward momentum, signalling ashift from an earlier oversold stand. This upward trend is echoed by the Tom DeMark Pressure Ratio (TDPR), illustratingrenewed buying interest in the stock.

• We expect WCEHB to test its immediate resistance at RM0.675 in the upcoming period. Successfully surpassing this pivotalresistance with conviction could pave the way to the next significant resistance at the recent peak of RM0.750.

• We recommend an entry point for the stock at between RM0.65-RM0.66, with an initial target price set at RM0.735 (representingc.13% upside). Concurrently, we recommend a stop-loss level at RM0.62 (representing a 4.6% downside risk).

Source: Kenanga Research - 14 Sept 2023