LAYHONG (Not Rated)

• LAYHONG slipped 4.0 sen (-4.2%) to finish at RM0.920.
• The stock entered into a consolidative phase since Jan 2018 with price moving in the range of RM0.920-RM1.01, forming a pattern that resembles channel.
• Yesterday’s loss drove the stock to the lower range of its channel with stochastic indicator flashing an oversold signal. Moreover, the display of MACD divergence could suggest potential for upside advancement.
• Balance of evidence, expect a rebound from the lower channel range to retest RM1.01 (R1). Should R1 is taken out decisively, subsequent resistance identified through measurement objective is near Oct 2017 high of RM1.09 (R2).
• Conversely, a significant break below RM0.920 (S1) could be negative and may trigger capitulation towards RM0.850 (S2).

SCIENTX (Not Rated)

• SCIENTX climbed 28.0 sen (3.44%) to close at RM8.43, on the back of strong trading volume.
• Yesterday’s move saw SCIENTX took out its RM8.32 resistance level decisively, potentially to suggest for a move higher over the coming days.
• Positive momentum indicators such as MACD-signal line crossover and upticks on RSI and Stochastic are all in supportive for SCIENTX making the next higher high towards resistance level RM8.60 (R1) and RM8.85 (R2) further up.
• Failure to take out its (R1) could lead the share trending towards support levels RM8.00 (S1) with a violation of the RM7.85 (S2) support further down would be a red flag.

Source: Kenanga Research - 27 Mar 2018