Samchem Holdings surged and tested the RM1.16 resistance level. With its RSI indicator pointing upwards, coupled with higher trading volume, we see a possibility for a technical breakout. If this happens, we expect it to move towards the short-term target prices of RM1.22 and RM1.27. The downside support is projected at RM1.05. Traders are advised to exit on a breach to avoid further losses.

Trading Call: Buy on pullback RM1.16

Target: RM1.22, RM1.27 (time frame: 2-4 weeks)'

Exit: RM1.05

Source: AmInvest Research - 5 Jan 2021