SAMAIDEN GROUP BERHAD (Technical Buy)

• After spending eight days in a consolidation phase, Samaiden's share price experienced a notable upward shift. Previouslyfluctuating near its 13-day Simple Moving Average (SMA), the stock broke through its upper consolidation range to close atRM1.28 yesterday, accompanied by a surge in trading volume.

• Technically-speaking, the stochastic oscillator (with settings 20,3,3) has started to move upwards, departing from its previouslyoversold condition. Concurrently, the Tom DeMark Pressure Ratio (TDPR) is also on an upward trajectory, indicating that buyinginterest in the stock has been reinvigorated.

• We anticipate that Samaiden may soon revisit its recent peak of RM1.35 in the near term. Should the stock manage to breakthrough this crucial resistance level convincingly, it would venture into uncharted territory. In such a scenario, the 13-day SimpleMoving Average (SMA) would serve as our principal support line.

• We recommend an entry point for the stock between RM1.26-RM1.28 level, with an initial target price set at RM1.35(representing >5.5% upside). Concurrently, we recommend a stop-loss level at RM1.22 (representing a 5% downside risk).

Source: Kenanga Research - 5 Sept 2023