Scomi may trade higher after the firm move yesterday. Thestock has been on a downtrend since peaking in 2007. Nonetheless, the significanteasing of downward momentum in the past year may herald a change in trend.  Buying support is also seen from the stock'sability to hold above the Sept low of RM0.25 for the past 6 months. A newupleg, at least a correction to the Feb-March decline, could be on the cardsafter the firm move yesterday, which saw the stock closed the highest in 3weeks. The high volume recorded yesterday also suggests a return of marketinterest. Thus, purchases can be made above the 3-week high of RM0.275, with a stoploss on close below RM0.25. The price target is the recent high of RM0.32,followed by the 52-week high of RM0.34. A violation of both levels could see thestock move higher and possibly reaching RM0.41, based on the width of the past1-year sideways move. The upward bias is nullified should the stop loss be triggered,after which expect the stock to continue its 5-year long decline.

AirAsia's share price may rally further if it can build upon the positive candle yesterday. The stock was highlighted in our previousreport on its possibility of trading lower after the successful breakdown ofthe 5-month support level in late March. The expected selloff, however, did nottake place. In fact, the stock managed to find support just above the recentlow of RM3.34 yesterday and went on to close on a 'Bullish Engulfing' candle.The surprise change of event signals the lack of follow-through selling, andthis may herald the return of buying. Thus, purchases can be made above theprior 2-day high of RM3.42 with a close below RM3.34 as the stop loss.  A more conservative trade may involve waitinguntil a close above RM3.55 before entering. This would see the stock back abovethe rising 200-day MAV line. The price target is RM4.00, which will see it at a6-month high and then the 2011-high of RM4.20. A successful violation of RM4.20will see the stock continuing its longer-term uptrend. The upside bias iserased should the stop loss be triggered, after which look for the stock totrade lower, with support expected at RM3.10 and the Sept-low of RM2.70. Aviolation of RM2.70 will likely see the longer-term trend turning down.

Source: OSK188