Weekly Hot Stocks: KNM, AirAsia, Velesto, Ekovest, Dsonic

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KNM shows sign of strength after three months consolidation. This confirmation indicates there is a potential upside after the accumulation phase. The recent quarter earnings added a positive outlook on this stock. Currently, the stock is testing RM0.426 support. Possible uptrend if RM0.466 resistance is penetrated.

Velesto is another potential uptrend stock. Again, the stock consolidated for three months after the rally in 1Q2019. The stock shows no sign of weakness and broke RM0.34 resistance this week. RM0.34 serves as the current support, cut lost must be carried out if the support is penetrated.

AirAsia has been sideways since the beginning of the year 2019. After bouncing from RM1.65 support, it shows a potential rally. However, the recent earnings added to the negative outlook of playing this stock. The current support is RM1.83 and the resistance is RM2.10.

Dsonic has just broken the RM0.95 resistance from the ascending triangle formation. The strong rally presents a potential further uptrend. After testing RM1.00 support, the stock showed momentum on 22nd October with high volume compares to previous 2 trading days.

Ekovest is forming the descending triangle since May surprise rally. The stock shows no sign of a further uptrend and it is testing RM0.727 support. Looking at the current situation, it is not advisable to enter this stock and keep it in the monitor list.

Author: Gerald Koh