SAMCHEM (Not Rated). Despite the broader weakness in the market, SAMCHEM’s share price surged 8.0 sen (6.2%) to finish at RM1.37. Chart-wise, the trend is positive with the share price above all 3 key SMAs. It began its uptrend in August, and had risen from RM0.80 (August) to as high as RM1.51 (October) before encountering a healthy pullback. Nevertheless, renewed buying interest emerged yesterday, resulting in a consolidation breakout on increased volume. The RSI and Stocahstic indicators have also hooked upwards to signal a shift to bullish momentum. We expect the share price to be upside biased from here, with a retest of its October high of RM1.51 (R1) fairly soon. Should this level be taken out next, further gains would then be expected towards RM1.73 (R2) next. Downside support levels are RM1.30 (S1) and RM1.20 (S2) further down.

MBL (Not Rated). MBL’s share price rallied to a 2-year high of RM1.14 yesterday, before paring gains to finish up by 4.0 sen (+3.7%) at RM1.12. Trading volume surged to 2.1m shares, 8-fold the 30-day moving average. Earlier in May, MBL commenced an uptrend which saw its share price climbing from RM0.80 to as high as RM1.10 within four months. More recently over the past two months, the share price was stuck within a sideways range between RM0.965- RM1.10. Nevertheless, MBL finally broke out of this congestion zone to signal a continuation of its prior uptrend. From here, we expect the share price to be biased to the upside with key resistances to look out for at RM1.16 (R1) and RM1.28 (R2). Look to buy on weakness closer to RM1.08/1.10 (S1) support. A breach below RM1.00 (S2) would be highly negative for the technical outlook.

Source: Kenanga Research - 29 Nov 2016