SIME (Not Rated). SIME has been on a downtrend trajectory for the past 2.5 months after reaching a high of RM8.79. The share price recently staged a rebound play from RM7.17 (S2), as it has broken out from its downtrend resistance trend line and its 20-day SMA level. Indicator-wise, MACD is on its bullish convergence while both RSI and Stochastic are trending up strongly, pointing towards a positive outlook. Should followthrough buying interest persist, we view that the share price could look to ride on its rebound play momentum to retest its strong resistance level of RM8.00 (R1) and possibly RM8.50 (R2) next.

XINHWA (Not Rated). Logistics firm XINHWA recently garnered investors interest post its 2-month consolidation phase. The share price has confirmed its rebound play yesterday by gapping up 7 sen (+6.6%) to break out from its 20-day SMA level. Key momentum indicators are also supportive of the bullish outlook, displayed by the strong uptick shown by the Stochastic and RSI indicators, while MACD indicator is also on a bullish convergence. Thus, we view that the share price could be poised for further uptrend towards its recent high level of RM1.32 (R2) in the near-term.

Source: Kenanga Research - 31 Dec 2015