SIGGAS (Take Profit; TP: RM1.10). Earlier in July, we recommended a Trading Buy on SIGGAS at RM0.935 after the share price signalled a rebound from its uptrend channel support level (report dated 27-July). Over the subsequent weeks, the share price had climbed to as high as RM1.41 (+50.8%), before staging an abrupt pullback to RM1.00. The price action had been choppy since, and although the share price has since recovered somewhat, SIGGAS’ overall technical picture is now demonstrating some risk. Note the yesterday’s downward move was accompanied by high volume while key momentum indicators such as the RSI and Stochastic are on a downward tilt. As such, we suggest locking in prior gains unless and until the technical picture improves. Immediate resistance levels are now RM1.18 (R1) and RM1.41 (R2) while support levels are RM1.07 (S1) and RM1.00 (S2).

LIONIND (Not Rated). Yesterday, LIONIND gained an impressive 7.0 sen (+5.2%) to continue a rally started since the beginning of the month. Notably, this rally signifies a breakout from a three-month period of sideways consolidation after a prior uptrend which emerged at the start of the year. Likewise, key indicators have also begun to turn bullish, with key SMAs also displaying a “golden-cross” following yesterday’s move. Should the momentum sustain, we expect the share to continue its upwards trend towards resistances at RM1.50 (R1) and RM1.63 (R2). Meanwhile, a momentary pull-back could see some resistances at RM1.28 (S1), while a break below RM1.01 (S2) would be highly negative.

Source: Kenanga Research - 14 Sept 2017