SCABLE (Not Rated). Sarawak-related stocks witnessed piqued investor’s interest yesterday, as chief minister Adenan Satem hinted of state elections within the coming months, possibly by March. In particular, SCABLE’s share surged 12 sen to close at RM1.68 on high trading volume. Technically, SCABLE’s share price is in a medium-term uptrend is poised to continue is bullish move following yesterday’s departure from the trend-line. The 14-day Stochastic has also hooked upwards to trigger a buy signal. Hence, expect the share price to move higher towards the recent high of RM1.79 (R1) before encountering some resistance. Further resistance is located at RM1.90 (R2) while downside support can be found at the 20-day SMA at RM1.66 (S1) and the trend-line at RM1.55 (S2).

CMSB (Not Rated). CMSB’s share price also benefited from comments by the Sarawak chief minister yesterday, having risen 16 sen to close at RM5.24 for the day. CMSB had been trading within a broadening range and has now rebounded from the RM5.00 psychological level/ support level. In fact, the bullish move yesterday saw the share price breaking above the 20-day SMA to trigger a buy-signal along with the 14-day SMA. Hence, traders looking for a short term scalping idea may expect the share price to inch higher towards the November high of RM5.43 (R1) and possibly RM5.50 (R2) next. Downside support is likely to be present at the aforementioned 20-day SMA at RM5.11 (S1) as well as the RM5.00 (S2) level. 

Source: Kenanga Research - 8 Dec 2015