Sycal may trade higher if it can hold above thepsychological level. The stock has been in consolidation phase for the pastfour months, which came after the rally of Sept-Dec 2011. The sideways correctioncarries a slight downside bias to it, with the stock making a lower high inFebruary. However, the support level of RM0.18 is still holding strong, judgingfrom the rebound last Friday. It formed a 'White' candle on improved volumethat suggests a return of buying just above the support level. Thus, acontinuation of the rally could be  onthe cards and positions can be initiated above the psychological RM0.20, with astop loss on close below the 4-month low of RM0.18. A good rally has to see theRM0.23 resistance level violated and the first target is the 52-week high ofRM0.25. A strong move could even see the test of RM0.30, a measured move based on  the Sept-Dec rally. The upside bias is nullified should the stop loss betriggered and this may even signal the end of the uptrend. Expect strongsupport at RM0.13.

SHC's share price may climb after breaking above theshort-term resistance level. The stock has been climbing steadily since the broadmarket rebound in Sept 2011. However, it finally took a breather and  spentthe most of March consolidating sideways. After finding support at RM1.00,where it withstood multiple tests in the past two weeks, the stock is ready tocontinue  its upward march again. Thiswas signaled by the successful break of the round figure of RM1.20 last Friday,which came on  the back of a 'Long White'candle of last Thursday. The breakout appears to look solid too as it was accompanied by high volume, indicating firmbuying interest. Purchases can be made above RM1.20 with a stop loss on closebelow RM1.00. Although the breakout does indeed look good, the possibility of afalse break cannot be ruled out altogether. Thus, an aggressive trader may  opt to exit should  the  price close back below RM1.20. The pricetarget is the psychological RM1.50 and a strong move may even see the test ofthe 2007-high of RM1.75. The trade may not work should  the stock close below RM1.00 and strongsupport is expected at RM0.80, the low of the gap of 13 March. 

Source: OSK188