Lion Industries poised for a breakout at RM0.92

The share price of Lion Industries ("Lion Ind") has corrected a lot since making a recent high of RM1.41 on May 11, after the announcement of the sale of Sabah Forest Industries for more than RM900 million by its subsidiary, Lion Forest Industries. Lion Ind's financial performance has been patchy due to the volatile prices of the major product of the group i.e. steel (see the Table below).










The chart shows that Lion Ind is in a medium-term uptrend with support at RM0.82. The stock closed the morning session at RM0.865, which is marginally above its 10-day MA. It will get very interesting if it can break above the RM0.92 level, which is the declining overhead short-term downtrend line. If a breakout happens, the stock's uptrend is likely to re-commence (see Chart below).


















Chart: Lion Ind's daily chart as at July 26