RANHILL (Not Rated)

• Yesterday’s afternoon session saw RANHILL swung to a daily high of RM1.170 (+3.54%), but closed unchanged at RM1.130.
• Chart-wise, the share is currently in a consolidation phase after breaking out from its uptrend that began in Aug’18.
• Accompanied with uninspiring trading volumes, we observed that the share has been attempting to test its 50-day SMA. That said, we expect the share to continue its consolidation in the near-term.
• However, should the share decisively breaks above its 50-day SMA, which has proven to be a key resistance, we believe it may continue to rally towards its next resistance levels at RM1.300 (R1) and RM1.450 (R2).
• On the other hand, supports can be identified at RM1.020 (S1) and RM0.925 (S2).

SCOMNET (Not Rated)

• Yesterday, SCOMNET rose 0.55 sen (+5.58%) to end at RM1.040, backed by stronger-than-average trading volumes.
• Despite its overall uptrend which remains intact with the share currently trading above all of its key SMAs, we note that both the stochastic and RSI indicators are hovering around the overbought levels, hinting the possibility of a retracement.
• Should profit-taking activities take place, it is expected that the share to retrace towards its support levels at RM0.920 (S1) and RM0.815 (S2).
• Conversely, resistance levels can be found at RM1.020 (R1) and RM1.080 (R2).

Source: Kenanga Research - 13 Jun 2019