Naim Indah  mayrebound if it  can  hold above the support level. Late lastmonth, we highlighted the possibility of this stock  finding supportabove  the  psychological RM0.50 but  this failed to materialize. Our buyingprerequisite was not fulfilled and the stock continued to slide. However,support is expected at above RM0.41, the low of early February, and the priceaction yesterday suggests that support is holding, with buying likely to havereturned. As the stock  formed a 'BullishEngulfing' candle on improved volume, an upward continuation is still possibleand  a purchase can be made above Wednesday's high of RM0.465, with a closebelow RM0.41 as the  stop loss.  An aggressive trader may  choose a close below yesterday's low ofRM0.43 as  the  stop loss. Resistance remains at the previouslevels  of RM0.60 and RM0.70, providedthat the psychological RM0.50 is broken convincingly. A successful violation ofboth levels could see the stock testing the psychological RM1.00 mark. Thistrade may not work out if the stop loss is triggered, and  consecutive closes below RM0.41 shouldconfirm the weakness and may even spell the end of the 3-month uptrend.

Metronic's share price may climb after forming the positivecandle yesterday. The stock was highlighted at the end of last month as it lookedlikely to face selling pressure below RM0.25. This turned out to be true andthe stock fell subsequently. Nonetheless, it appears to have  found support just below the expected levelof RM0.16, which is a  62% retracement ofthe 5-day rally in mid-March.  The 'BullishEngulfing' candle formed yesterday  showsthe failure  of the  'Black' candles of Tuesday and Wednesday toelicit further selling. Therefore, a rebound is likely  to ensue and apurchase can be made above  the  Wednesday-high of RM0.165, with a close belowRM0.15 as  the  stop loss. The price target is the RM0.25 resistance level, with a successfulviolation even seeing the stock hit the round figure of RM0.40,  considering that there is no clear resistanceabove the all-time intraday high of RM0.315. This is provided that  the minorresistance  at  RM0.20 is broken convincingly. The upwardbias will be nullified should the stop loss be triggered, a development thatcould even spell the end of the uptrend. Expect strong support at thepsychological RM0.10.

Source: OSK188