Sino Hua-an International Bhd (2739)

• HUAAN closed at RM0.105 yesterday.

• Chart wise, share price is currently in consolidation mode and trading above key moving average line which is showing of a potential breakout. Furthermore, recent slew of announcements is seeing their restructuring gaining traction with the disposal of its legacy loss making coke business and the venture into energy storage, technology related business is set to revive the company’s fortune as the proposed acquisitions comes with profit guarantee. Hence, it is likely to see renewed interest in the stock where it could possibly retest its recent high of RM0.16.

• As such, resistance levels are expected at RM0.130 (R1) and RM0.160 (R2) level.

• On the downside, support levels are identified at RM0.09 (S1) and RM0.08 (S2).

Source: Rakuten Research - 25 Nov 2020