Post its disappointing 4Q13 results, CHHB had retreated as much as 24% from its RM1.88 high to a recent low of RM1.43. Nevertheless, we see a silver lining now after the share price rallied 12sen (to RM1.59) yesterday, signaling a technical rebound. A healthy uptrend coupled with the improving readings from the RSI indicator, led us to believe that CHHB is well-positioned to extend its gains from here. We expect follow-through buying today, and an eventual move to retest the recent all-time high of RM1.88 (R2) fairly soon. Meanwhile, support is pegged at RM1.55 (S1) and RM.45 (S2) where we expect buying interest to emerge.

 

Source: Kenanga