Renewed buying interest emerged in Samchem, says AllianceDBS Research

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KUALA LUMPUR (Sept 19): AllianceDBS Research said Samchem Holdings Bhd (Samchem) had on Sept 18 gapped up to reach a high of 93 sen before settling at 91.5 sen (up 3.5 sen or 3.97%).

In its evening edition yesterday, the research house said a crossover of the 93.5 sen hurdle would likely see Samchem trading upward with the next upside target pegged at RM1.03.

It said risk taking traders can establish a buying position at 90.5 sen on a small pullback.

“Once a buying position is established, a stop loss at 89.5 sen level must be placed for risk capital protection, and this 89.5 sen is to be followed by a trailing stop loss strategy.

“If you are prepared to take a trading loss risk of RM10 (excluding brokerage) for RM125 potential profit, you may acquire 1,000 shares with a capital amount of RM905 assuming buying order is filled at 90.5 sen,” it said.