GTRONIC (Not Rated). GTRONIC underwent a heavy sell-down after the company reported a massive 78.5% decline in its quarterly profit, hit by a double whammy from declining smartphone sales and weak Ringgit. The share price had found some strong footing at the RM3.00/3.10 level recently, consolidating within RM3.04-RM3.60 over the past few weeks. Yesterday, the share price surged 26.0 sen (7.76%) to stage a breakout away from its congestion zone to close at RM3.61 on the back of increasing trading volume. MACD histogram is currently undergoing a bullish convergence to lend a supportive hand on the rebound play. From here, we reckon follow-through buying interest could lead the share price to climb to greater heights at RM3.95 (R1) and possibly RM4.40 (R2) next in the near to mid-term. Immediate support is seen at RM3.54 (S1) followed by RM3.05 (S2).

NWP (Not Rated). Timber products manufacturer NWP saw its share price gaining 3.5 sen (12.3%) yesterday to RM0.32 on high trading volume. Earlier in April, the share price had broken out of its sideways trend at RM0.12, and commenced a strong rally to as high as RM0.645 (28-Apr). Nevertheless, gains were short lived and the share price subsequently retreated to a low of RM0.275 before levelling off between RM0.275-RM0.30. With yesterday’s bullish move, the Stochastic indicator has finally emerged from oversold levels to indicate a collective shift in sentiment. Hence, we believe NWP is now poised to commence the next up-leg from here. The next resistance levels are RM0.36 (R1) and RM0.42 (R2) while downside should be capped at RM0.275 (S1). 

Source: Kenanga Research - 26 May 2016