LIONIND (Not Rated)

• Yesterday, LIONIND gained 6.0 sen (+5.13%) to close at RM1.23.
• Technical-wise, the share has staged an exceptional rally since bottoming out in July. However, we think that the rally is overextended and a retracement is likely to happen soon. Notably, yesterday’s candlestick gapped down before closing the day higher indicating potential weakness in the rally.
• Both stochastic and RSI indicators are in the overbought zone further suggesting a potential correction.
• From here, we expect LIONIND to test its support of RM1.19 (S1) and further to RM1.09 (R2) should the first support level be taken out. Keen investors may want to keep an eye on these levels to take a position.
• Conversely, resistance levels can be identified at RM1.29 (R1) and RM1.39 (R2).

ECONBHD (Not Rated)

• ECONBHD gained 3.0 sen (+3.26%) yesterday to close at RM0.950.
• Overall technical outlook seems to be improving as the share continues to remain above its 100-day SMA after breaking above it in late-July. The share also seems to be consolidating in a potential ascending triangle pattern. Coupled with the positive signals from key momentum indicators, ECONBHD seems ripe for a breakout.
• We expect ECONBHD to test its resistance of RM0.975 (R1). A break above (R1) would indicate a breakout and we will look towards RM1.07 (R2) as the next resistance.
• Meanwhile, any downwards bias should see support at RM0.910 (S1) and RM0.875 (S2) should the first level be taken out.

Source: Kenanga Research - 17 Aug 2018