On Tuesday, SHH advanced 9.0 sen or 7.76% to end at RM1.26 with high daily trading volume. Of particular interest is that it has broken out from its immediate downtrend resistance of RM1.18, settling above its 50 & 100-day SMAs. Indicatorwise, Stochastic has rebounded strongly from its oversold region and performed a positive crossover. The bullish signal was confirmed by RSI trending upward. As such, we are issuing a “Trading Buy” call on the stock with a target price of RM1.40 (R2) (which coincides with its 20-day SMA and Bollinger band mean), with expectation that the share price will retrace back to its band-mean.

Source: Kenanga Research - 13 May 2015