Samchem at higher high, says AllianceDBS Research

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KUALA LUMPUR (Sept 25): AllianceDBS Research said Samchem Holdings Bhd (Samchem) had on Sept 21 traded higher to RM1.00 before closing near the day’s low of 98 sen (up 0.5 sen or 0.51%).

In its evening edition last Thursday, the research house said Samchem continued to trade above the 20-day (blue) and 50-day (red) moving average lines.

“Following the up close on Sept 21, the stock is likely to move higher again with immediate hurdle at RM1.03.

“A crossover of RM1.03 should see further price rise to the next overhead resistance at RM1.10.

“The support is pegged at 93 sen. A fall below 93 sen would put pressure on the stock down to the subsequent support at 90 sen,” it said.

AllianceDBS Research said stock volume traded on Sept 21 was 3.43 million shares compared to the 3-month average volume of 710,000 shares.

The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.

It said the relative strength index indicated that the stock was currently in an overbought zone.