DAILY TRADING STOCKS: Sycal Ventures, Sin Heng Chan

Sycal’s daily chart

Sycal may trade higher if it can hold above the psychological level. The stock has been in consolidation phase for the past four months, which came after the rally of Sept-Dec 2011. The sideways correction carries a slight downside bias to it, with the stock making a lower high in February. However, the support level of RM0.18 is still holding strong, judging from the rebound last Friday. It formed a “White” candle on improved volume that suggests a return of buying just above the support level. Thus, a continuation of the rally could be  on the cards and positions can be initiated above the psychological RM0.20, with a stop loss on close below the 4-month low of RM0.18. A good rally has to see the RM0.23 resistance level violated and the first target is the 52-week high of RM0.25. A strong move could even see the test of RM0.30, a measured move based on  the  Sept-Dec rally. The upside bias is nullified should the stop loss be triggered and this may even signal the end of the uptrend. Expect strong support at RM0.13.

SHC’s daily chart

SHC’s share price may climb after breaking above the short-term resistance level. The stock has been climbing steadily since the broad market rebound in Sept 2011. However, it  finally took a breather and  spent the most of March consolidating sideways. After finding support at RM1.00, where it withstood multiple tests in the past two weeks, the stock is ready to continue  its upward march again. This was signaled by the successful break of the round figure of RM1.20 last Friday, which came on  the back of a “Long White” candle of last Thursday. The breakout appears  to look solid too as it was accompanied by high volume, indicating firm buying interest. Purchases can be made above RM1.20 with a stop loss on close below RM1.00. Although the breakout does indeed look good, the possibility of a false break cannot be ruled out altogether. Thus, an aggressive trader may  opt to  exit should  the  price close back below RM1.20. The price target is the psychological RM1.50 and a strong move may even see the test of the 2007-high of RM1.75. The trade may not work should  the stock close below RM1.00 and strong support is expected at RM0.80, the low of the gap of 13 March. 

Source: OSK188