Daily technical highlights – (LAYHONG, BAHVEST)

LAYHONG (Not Rated)

• LAYHONG gained 3.0 sen (+6.74%) to end at RM0.475, yesterday.
• We note the share has recently bounced off its 100-day SMA and could continue its rally. The 20 and 100 day SMAs are in a “Golden-Cross” formation indicating a shift in trend.
• Coupled with a bullish crossover signal from MACD indicator, we believe the share could be poised to head higher.
• Key resistance levels to look out for are RM0.490 (R1) and RM0.530 (R2). Conversely, support levels can be identified at RM0.445 (S1) and RM0.415 (S2).

BAHVEST (Not Rated)

• BAHVEST gained 6.0 sen (+13.04%) yesterday to close at RM0.520.
• The share has recently broken below its 100-day SMA. However, we note the formation of a candlestick with a long lower wick signifying returning buying interest.
• We make reference a similar event in December 2018 when the share broke below its 100-day SMA and rebounded. As such, we believe that there could be a technical rebound soon.
• Key resistance levels to keep an eye on are RM0.570 (R1) and RM0.635 (R2) as the resistance levels.
• On the other hand, any further downside should see support at RM0.515 (S1) and RM0.460 (S2).

Source: Kenanga Research - 18 Oct 2019