SAMCHEM (Stock Code: 5147).
Despite the broader weakness in the market, SAMCHEM’s share price surged 8.0 sen (6.2%) to finish at RM1.37. Chart-wise, the trend is positive with the share price above all 3 key SMAs. It began its uptrend in August, and had risen from RM0.80 (August) to as high as RM1.51 (October) before encountering a healthy pullback. Nevertheless, renewed buying interest emerged yesterday, resulting in a consolidation breakout on increased volume. The RSI and Stocahstic indicators have also hooked upwards to signal a shift to bullish momentum.
We expect the share price to be upside biased from here, with a retest of its October high of RM1.51 (R1) fairly soon. Should this level be taken out next, further gains would then be expected towards RM1.73 (R2) next. Downside support levels are RM1.30 (S1) and RM1.20 (S2) further down.
source: Kenanga Research – 29/11/16
SAMCHEM HOLDINGS BERHAD
The Company’s core business is the distribution of chemicals which include PU intermediate and specialty chemicals.