Sime Darby Bhd (4197)

• SIME rose 2.3% or 5 sen to close at RM2.20 yesterday.

• SIME which has been on a short-term downward trend since Dec 2019 rebounded yesterday and closed with a long positive while candle. Meanwhile, key momentum indicator which has bounced off from its oversold region is signalling positive momentum on buying interest, which could potentially push the share price to higher level.

• As such, resistance levels are expected at RM2.28 (R1) and further to RM2.40 (R2).

• Conversely, downside support levels are expected at RM2.14 (S1) and RM2.04 (S2).

Source: Rakuten Research - 31 Jan 2020