• Technical BUY with +21.7% potential return
• Last price: RM1.38
• Target price: RM1.62, RM1.68
• Support: RM1.26
• Stop-loss: RM1.24

BUY with a target price of RM1.68 and stop-loss at RM1.24. Based on the daily chart, INNO penetrated the breakout level of RM1.34 and closed higher at RM1.38 on last Friday’s movement with higher trading volume. This is supported by the 7-day EMA crossing above the 21-day EMA, which indicates a bullish signal. This is also consistent with the uptick in the RSI, which suggests stronger buying momentum ahead. Additionally, the bullish crossover in +DI and ADX lines suggests strong upward movements. We peg our targets at RM1.49 and RM1.63 in the near to medium term.

Expected Timeframe: 2 weeks to 2 months

Source: UOB Kay Hian Research - 13 Nov 2017