TRC (Trading Buy, TP: RM0.585). TRC has recently undergone a consolidation phase after rallying to reach a YTD high level of RM0.525. The share price has garnered investors’ interest once again to climb 1.5 sen (3.2%) yesterday, staging a technical breakout from its ‘Flag’ chart pattern on the back of strong trading volume. Stochastic has staged a bullish crossover from its oversold position to signal a bullish reversal, implying pilling buying momentum. Given the bullish technical breakout, we are placing a buy call on this stock as we believe that the share price could trend towards RM0.525 (R1) and possibly 3 bids above our target price objective of RM0.585 at RM0.60 (R2) next on follow-through buying interest. Stop-loss is placed 3 bids below its immediate support level of RM0.46 (S1) at RM0.445, while the next level of support is seen at RM0.40 (S2).
LIONIND (Not Rated). LIONIND rose 2.5 sen (7.4%) yesterday to close at RM0.365 on high volume. The share price previously had been hovering sideways for half a year before trading interest began to pick up early last month (early-March). Subsequently, the share price rallied from a low of RM0.22 to as high as RM0.40 before consolidating downwards. However, the share price has now broken out of a Bullish “Flag” formation to trigger a continuation of the uptrend following the month-long consolidation phase. With this bullish signal, we expect the share price to retest the RM0.40 (R1) high, before moving up the “Flagpole” measurement objective of RM0.53 (R2). its downside appears limited with support levels at RM0.35 (S1) and RM0.30 (S2) further down.
Source: Kenanga Research - 13 Apr 2016
LIONIND (4235) - Daily Technical Highlights – TRC | LIONIND
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