SNS Network poised for further gains after technical breakout — Rakuten Trade
KUALA LUMPUR: SNS Network Technology Bhd (SNS) may see further upside after breaking out of a bullish technical pattern, according to Rakuten Trade.
The move is supported by rising trading volume and a recent bullish crossover in its exponential moving averages, a trend indicator that gives more weight to recent prices to help spot changes in a stock's direction more quickly.
In its technical research note today, Rakuten Trade said SNS has completed a cup and handle formation, a chart pattern typically associated with continued upward momentum, and is showing signs of strengthening trend.
The brokerage expects SNS to test its immediate resistance at 57 sen, with a higher target of 61 sen. Support levels are identified at 51.5 sen and 48 sen, with the latter also serving as the stop-loss level.
SNS last traded at 54.5 sen. The counter has rebounded significantly from its 52-week low of 34 sen but remains below its 52-week high of 96 sen.
Rakuten Trade classified the trend as bullish, while noting that the Relative Strength Index remains at a neutral level, suggesting further upside potential without entering overbought territory.
The brokerage added that all trading decisions involve risk and advised investors to conduct their own assessments and seek professional advice where necessary.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
13 hours ago
- Malay Mail
Bursa Malaysia ends mixed as bargain hunters lift KLCI slightly
KUALA LUMPUR, June 20 — Bursa Malaysia ended the week mixed with the benchmark index climbing 0.08 per cent, as bargain hunting emerged following the recent sell-off, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.30 points to 1,502.74 from Thursday's close of 1,501.44. The benchmark index opened 0.50 of-a-point lower at 1,500.94 and moved between 1,500.04 and 1,507.97 throughout the trading session. However, the broader market was negative, with 517 decliners outpacing 319 gainers, while 505 counters were unchanged, 1,083 untraded and 25 suspended. Turnover dropped to 2.60 billion units worth RM3.37 billion compared with Thursday's 2.81 billion units valued at RM1.69 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said major regional indices namely Hong Kong's Hang Seng Index and Singapore's Straits Times Index were also in positive territory after China kept benchmark interest rates unchanged. 'Technology-driven Asian indices were the standout performers, buoyed by a rebound in investor confidence and a recovery in the sector,' he told Bernama. Thong also said United States (US) President Donald Trump has delayed his decision on potential US involvement in the Middle East conflict by two weeks, providing markets with short-term relief. 'As for the local bourse, we see that the benchmark index is well supported above the 1,500 points; however, it is not yet out of the danger zone unless it can climb above 1,515 points,' Thong said. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research Mohd Sedek Jantan said the FBM KLCI remained broadly stable throughout the trading day, marking a weekly decline of 16 points from last Friday's close of 1,518.11 points. He said the negative return reflects a volatile week shaped by rising geopolitical risks and cautious investor sentiment. 'Despite today's intraday rebound, the broader week-on-week performance underscores prevailing uncertainty in the market,' he said. On the macroeconomic front, Mohd Sedek noted that the data from the Department of Statistics showed a a month-on-month decline in both Malaysia's imports and exports in May, potentially indicating weakening global demand or ongoing supply chain disruptions. 'Notably, exports to the US fell by 2.8 per cent from RM19.2 billion to RM18.7 billion. However, this contraction was not uniform; only four of Malaysia's top ten export destinations-namely China, the European Union, Taiwan, and Vietnam-registered positive growth,' said Mohd Sedek. Among the heavyweights, Maybank rose 6.0 sen to RM9.66, Tenaga and IHH Healthcare remained unchanged at RM14.22 and RM6.85 respectively, Public Bank gained 2.0 sen to RM4.21, and CIMB advanced 7.0 sen to RM6.65. For the most active stocks, PUC and MYEG were flat each at 2.0 sen and 90.5 sen respectively, Tanco declined 1.5 sen to 94.0 sen, MR DIY slid 1.0 sen to RM1.63, and YTL Corporation dropped 4.0 sen to RM2.12. On the index board, the FBM Emas Index perked up 5.25 points to 11,228.99, the FBMT 100 Index increased 11.44 points to 11,015.45, while the FBM Emas Shariah Index declined 31.55 points to 11,201.34. The FBM 70 Index added 24.30 points to 16,117.75 and the FBM ACE Index dropped 14.20 points to 4,400.85. By sector, the Financial Services Index soared 138.24 points to 17,468.38 and the Industrial Products and Services Index slid 0.97 of-a-point to 147.27. The Plantation Index improved 1.91 points to 7,220.52 while the Energy Index eased by 3.94 points to 735.71. The Main Market volume swelled to 1.64 billion units valued at RM3.22 billion from 1.13 billion units worth RM1.45 billion registered at Thursday's close. Warrants turnover tumbled to 634.80 million units worth RM82.94 million versus 1.38 billion units worth RM164.26 million previously. The ACE Market volume expanded to 331.19 million units valued at RM73.43 million against 294.93 million units worth RM81.53 million yesterday. Consumer products and services counters accounted for 280.39 million shares traded on the Main Market, industrial products and services (230.16 million), construction (79.20 million), technology (191.47 million), SPAC (nil), financial services (131.23 million), property (166.28 million), plantation (35.12 million), REITs (78.05 million), closed end fund (7,300), energy (150.50 million), healthcare (103.21 million), telecommunications and media (79.02 million), transportation and logistics (21.27 million), utilities (95.82 million), and business trusts (66,200). — Bernama
New Straits Times
18 hours ago
- New Straits Times
Rakuten cuts FBM KLCI year-end target to 1,630 on weaker earnings outlook
KUALA LUMPUR: Rakuten Trade Sdn Bhd has cut its year-end target for the FTSE Bursa Malaysia KLCI (FBM KLCI) index to 1,630, down from its earlier forecast of 1,730, citing slower-than-expected corporate earnings growth. Research head Kenny Yee Shen Pin said the revised projection is based on a price-to-earnings ratio of 16 times, and reflects a more cautious outlook amid persistent operating cost pressures, weak global sentiment, and a lack of domestic catalysts. Although the current market valuation remains reasonable, Yee said it is not strong enough to attract investor interest amid prolonged uncertainty. "The revision was made based on the current assessment of the performance of listed companies, which are facing operating cost pressures, weak global market sentiment, and the absence of new domestic growth catalysts. "At present, the local market is in a sideways phase. There are no clear new catalysts. Investors also view our market as rather 'boring'," he said during Rakuten Trade's third-quarter market outlook media briefing today. Yee also noted that the FBM KLCI is back to the 1,005 level, which is widely regarded as a psychological support point. "If the index dips below that threshold of 1,480 or 1,470, I think that would be a screaming buy for the local market," he said, suggesting that any significant pullback could present strong buying opportunities for investors. Meanwhile, Rakuten Trade equity research vice president Thong Pak Leng highlighted the potential rationalisation of RON95 fuel subsidies as another headwind that could weigh on sentiment. "But judging from what's happening in the Middle East, the government might not proceed too aggressively. Perhaps we will see a partial rationalisation of RON95. It really depends on how high crude oil prices climb. "In the current state, there's no fresh catalyst pushing up the market. While valuations are reasonable, everything feels quite dull. That is why we are also seeing a lack of participation from retail investors," Thong said. On the ringgit, Yee said Rakuten Trade believes the local currency is currently undergoing some recalibration and is expected to trend between 4.10 and 4.20 against the US dollar by the end of the year. "I think maybe the ringgit will strengthen against the dollar as well. As you all know, the Dollar Index has already deteriorated by 10 per cent year-to-date against major currencies. "So moving forward, many expect the dollar index to continue to weaken further. Along the way, we may see the ringgit perform better against the dollar," he added.
The Star
18 hours ago
- The Star
FBM KLCI hovers near 1,500 as uncertainty mounts
KUALA LUMPUR: Malaysia's main stock index came closer to dipping below the 1,500-point psychological level on Friday as investors fretted over the escalating Middle East conflict. The FBM KLCI dropped 0.5 points to 1,500.94, grazing the support amid worries the US will mount an attack on Iran over the coming weeks. Meanwhile, Malaysian policymakers are meeting their US counterparts to negotiate the level of tariffs imposed on Malaysian exports. TA Securities said the market sentiment will likely remain muted ahead of the weekend, with investors awaiting the outcome of the negotiations, which will determine future trade relations. "Immediate index support stays at 1,490, with stronger supports found at 1,465 followed by 1,444. Immediate resistance is maintained at 1,564 with next upside hurdles seen at the recent high of 1,586, followed by 1,610 ahead," it said in its market commentary. Rakuten Trade said it believes the market weakness is owing to persistent foreign selling. "Nonetheless, we would advocate our clients to accumulate on the blue chips if and when the index dips below the 1,500 mark at around the 1,480 thresholds," it said in its outlook. On the domestic market, Nestle shaved 21 sen to RM71.28, Petron dropped seven sen to RM3.82 and British American Tobacco fell six sen to RM4.50. Notable gainers included Allianz up 20 sen to RM19.20, Apollo gaining eight sen to RM6.58 and Yinson eising seven sen to RM2.39. Top actives were Magma up one sen to 47.5 sen, Velesto unchanged at 18.5 sen and Pavilion REIT down four sen to RM1.50.
