LIENHOE (Not Rated). LIENHOE saw its trading volume quadrupled to 4.7m shares yesterday, with its share price gaining 1.5 sen (3.7%) to RM0.425. Chart-wise the share price has been trading within a bullish “Broadening formation” since March. More recently this week, the share price has begun to rebound from its uptrend support, while the RSI and Stochastic indicators have also started to signal the start of a near-term upcycle. From here, we see the potential for the share price to stage a retest of its RM0.46 (R1) recent high, before a further move towards RM0.50 (R2) and beyond. Any downside towards the RM0.38-RM0.40 (S1) support levels may be viewed as a buying opportunity, failing which RM0.36 (S2) should offer additional support.

SAM (Not Rated). SAM closed at a fresh record yesterday, after the share price climbed 19.0 sen (2.4%) to RM8.09. Last year, SAM endured a downtrend that saw the share price retreating from a high of RM7.99 to as low as RM4.90 before bottoming out. After many months of recovery, the share price subsequently managed to regain lost ground before yesterday’s crucial breakout into a new high. Indicator-wise, the MACD and RSI are both healthy, indicating that the recent bullish run still has legs. From here, the share price has a clear path towards RM8.72 (R1) and possibly RM9.12 (R2) further up. The former RM7.99 resistance has now turned support (S1), with an additional support level below at RM7.56 (S2).

Source: Kenanga Research - 7 Jul 2017