HSSEB (Not Rated)

• Yesterday, HSSEB fell 5.0 sen (-5.16%) to close at RM0.920.
• Technical-wise, the share has retraced after staging a rebound rally since June 2018. We think that the retracement is not over yet given that HSSEB failed to break above the key 100-day SMA. Key momentum indicators are also showing signs of retracement as well.
• From here, expect HSSEB to test support levels of RM0.855 (S1) and further down to RM0.740 (S2) if the first support level is failed to hold.
• Conversely, should the rally continue, resistance levels can be identified at RM0.945 (R1) and RM1.03 (R2).

REDTONE (Not Rated)

• REDTONE gained 1.0 sen (+3.64%) yesterday to close at RM0.280.
• Recent few white “Marubozu” candlesticks represent a pick-up in investors’ interest, bringing the share to decisively breakout from months of sideways trading.
• Likewise, indicators are also mostly in positive given gradually improving volumes and upwards movements in MACD.
• Key resistance level to look-out for is RM0.300 (R1). Once taken out, the share price is on a clear path for the next leg higher towards resistance level RM0.325 (R2).
• Conversely, downside support can be found at resistance-turned-support RM0.265 (S1) and RM0.235 (S2) further down.

Source: Kenanga Research - 14 Aug 2018