SAM (Not Rated). SAM has been consolidating since late-October 2015 when it failed to break out from its strong resistance level of RM8.00 back then. On the back of strong trading volume, the share price surged 21.0 sen (3.16%) to break out from its multi-month downtrend resistance level to settle at RM6.85. The underlying outlook has turned more positive with the MACD histogram staging a bullish convergence away above its zero-line. Nonetheless, we reckon that the share price could take some breather soon given the overbought situation shown in the RSI and Stochastic. Conservative investors should look out for any retracement towards the RM6.74 (S1) level before entering the stock, with near-term target objective set at RM7.75 (R1). Next levels of resistance and support are noted at RM8.00 (R2) anRM6.08 (S2).

PMBTECH (Not Rated). Yesterday, PMBTECH surged 10 sen (8.7%) to RM1.25 on rising volume. Prior to the past month, the share price had been range bound between RM0.90- RM1.00 for half a year. Nevertheless, the share price broke out of this sideways trend in early-May, and subsequently rallied to a high of RM1.35 before pausing for breath in recent weeks. Now, PMBTECH is poised to commence the next up-leg following yesterday’s breakout of a “Bullish Flag” pattern. The MACD indicator has also crossed above the signal line to reflect a pick-up in bullish momentum. Hence, traders may expect further gains ahead towards the recent high of RM1.35 (R1) before reaching the “Flagpole” measurement objective at RM1.50 (R2) next. Support is seen at RM1.08 (S1) and RM RM1.00 (S2).

Source: Kenanga Research - 3 Jun 2016