DAILY TRADING STOCKS: LPI, WASEONG, CANONE, DSCSOL, KNM, CSL, JCY, TRADEWINDS PLNT

LPI may enter into a correction should the 5-month support level of RM13.30  be broken convincingly. Liquidation can be undertaken if this happens and support  is expected at  the  December-low of RM12.65 and gap of 18 Oct  at RM12.40.  Buying may return  if the support level holds but expect strong resistance at the all-time high of RM14.00.

Wah Seong’s 2-year downtrend may continue if it closes below the psychological RM2.00. Positions can be exited should  this happen and support  is expected  at RM1.88 and RM1.68, both Fibonacci retracements of  the  2009-2010 rally. A close back above RM2.08 will nullify the weak bias and expect strong resistance at RM2.20.

Can-One may resume its upward movement after closing firmer yesterday. Purchases can be made on another close above RM2.06 with a stop loss on close below the recent low of RM1.96. The price target is RM2.80 provided that  the  strong resistance of RM2.20 is violated. A correction  is  likely to  ensue should the stop loss  be triggered and support may come at RM1.77 and RM1.60.

DCS may trade higher if it can close above the 7-month resistance level of RM0.15. Positions can be initiated if  this happens with a stop loss on close below  the one-month low of RM0.12. The price target is the Nov 2011-intraday high of RM0.22, with resistance also expected at RM0.20. The trade may now work out should the stop loss  be triggered and look for the stock to  return to the ideways trading.

KNM could see a return in buying after it gapped up on high volume yesterday.  Given the longer-term downtrend, positions could only be initiated on a close above yesterday’s high of RM0.78 with a close below yesterday’s low of RM0.745 asthe  stop loss. The price target is the prior low of RM0.84 and a strong move could see the stock go as high as RM0.91.  But look  for the downtrend to continue should the stop loss be triggered.

CSL may rebound further after the “Long White Day” yesterday. Thus, purchases can be undertaken on a close above yesterday’s high of RM1.54 with a stop loss on close below the round figure of RM1.50.  The price target is RM2.00, provided that  the  RM1.80 resistance level is violated. The upside bias is nullified should the stop loss  be triggered and weakness is confirmed on close below RM1.30. Expect strong support at the psychological RM1.00.

The selling pressure on JCY may intensify after it failed to break the resistance level of RM1.60 last week. Liquidation can be made on close below  the  3-day low of RM1.38 or otherwise on pullback towards RM1.46.  A violation of RM1.33 will confirm the weak bias and support is expected at the March-low of RM1.07. A close above RM1.47 could see a return in buying with a close above RM1.60 as the confirmation. Further resistance is at RM1.75.

Tradewinds - The stock may trade lower after it failed to cover the 16 May-gap of RM5.40. Thus, liquidation can be undertaken on close below yesterday’s low of RM5.23. Weakness is confirmed on close below RM4.75 and  the  next support is  located at RM4.25. However, look for the rebound to continue should it close above RM5.40. Strong resistance lies at RM6.00.

Source: OSK