Since early of May, LIIHEN has rebounded from a 3-month long pullback correction and subsequently penetrated the previous high/ crucial resistance (@RM1.45) to close at RM1.55 yesterday.  We believe that LIIHEN has confirmed a “Cup & Handle” chart pattern and is set for further gains ahead. Based on the RM1.80 measurement objective (aim to take profit at RM1.78 or 2 bids below the RM1.80 target level), the share price has another 15% of upwards distance though it would need to get past the RM1.65 resistance in the interim. Traders who are looking to buy into the stock should place a stop-loss at RM1.42 level, representing 3 bids below the RM1.45 resistance-turned support. This strategy implies a potential 1.8x reward/risk ratio, assuming a 15% (23 sen) upside while risking 9.2% (13 sen).

 

Source: Kenanga