LAYHONG (Not Rated)

• Yesterday, LAYHONG gained 1.5 sen (+2.24%) to close at RM0.685.
• Technically, the share has been consolidating on its 20-day SMA after punching through it in early-September. Yesterday’s close represented a break above its previous high of RM0.680, which could lead to a continuation of its early-September rally.
• Coupled with positive displays from key indicators, we expect follow-through momentum to bring the share price towards resistances at RM0.710 (R1) and RM0.765 (R2).
• Conversely, supports at RM0.680 (S1) and RM0.630 (S2) could potentially act as buying opportunities.

SRIDGE (Not Rated)

• SRIDGE rose 0.5 sen (+1.96%) to close at RM0.260 backed by stronger-than-average trading volume.
• Trend line is bullish since early July, with yesterday’s close saw a decisive breakout from RM0.250 prior resistance level.
• Technical indicators appear in supportive for a bullish move with key SMAs continuously in “Golden Crossover” as well as upticks seen in the MACD, RSI and Stochastic.
• Key resistance to look out for in the near-term is RM0.285 (R1). Once taken out, the share is on a clear path for the next leg of "higher high" towards resistance level RM0.320 (R2).
• Immediate downside support can be found at the resistance-turned-support level RM0.250 (S1) and RM0.230 (S2) further down.

Source: Kenanga Research - 25 Sept 2018