LIIHEN (Not Rated)

• LIIHEN gained 14.0 sen (4.93%) to close at RM2.98 yesterday.
• Chart-wise, the share continued to move higher after it broke above the key SMAs last week, and formed a long bullish candle yesterday coupled with above-average trading volume.
• However, the key indicators appear to be in the overbought zone, hence we expect some profit taking activities before the share continues its upward movement.
• From here, we expect the share to test its resistance levels at RM3.16 (R1) and RM3.31 (R2)
• On the other hand, downside supports can be found at RM2.78 (S1) and RM2.58 (S2).

MBL (Not Rated)

• MBL gain 2.0 sen (1.46%) to close at RM1.39.
• The share continues to trend higher after it breaking out from the “flag” continuation chart pattern last week.
• Key technical indicators appear to be in the overbought zone; thus, we expect some profit taking activities to emerge in near future before the share can continue its rally.
• Overall, we expect the share to test its resistance levels at RM1.40 (R1) and RM1.44 (R2).
• Conversely, support levels can be found at RM1.30 (S1) and RM1.26 (S2).

Source: Kenanga Research - 28 May 2019