Samchem jumped on higher trading volume yesterday, as it prepared to extend the rebound above the 21-day SMA line. A bullish bias emerged above the immediate resistance marked at MYR1.09. If the stock continues to trade above the resistance level, we think it will climb higher to test the next hurdle of MYR1.18, followed by MYR1.23. A downside breach of the MYR1.05 support would negate this expectation, and trigger a price correction.

Source: RHB Securities Research - 18 Dec 2020