Hot stocks: WTK, Spring Art

AmBank Research has highlighted two stocks with momentum based on technical charts.

WTK Holdings Bhd

WTK Holdings jumped and touched the 50 sen resistance level. With the momentum indicator RSI pointing upwards, coupled with higher trading volume, we see that there is a possibility it will experience a technical breakout.

If this happens, expect it to travel towards the short-term target prices of RM0.525 and RM0.57. The downside support is anticipated at 44 sen, whereby traders may exit on a breach to avoid the risk of a further correction.

Closing price : 47 sen (on Aug 14)

Trading Call: Buy on breakout 50 sen

Target: 52.5 sen – 57 sen (time frame: 2-4 weeks)

Exit: 44 sen

Spring Art Holdings Bhd

Spring Art is poised to test the 24.5 sen resistance level. With higher trading volume sighted,

coupled with its 21-day moving average pointing upwards, we think that the bullish momentum will soon push towards the short-term target price of 26 sen followed by 28 sen.

In this case, the downside support is marked at 22 sen, whereby traders may exit on a breach to avoid the risk of a further correction.

Closing price : 23.5 sen (on Aug 14)

Trading Call: Buy on breakout 24.5 sen

Target: 26 sen – 28 sen (time frame: 2-4 weeks)

Exit: 22 sen

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