· INARI (Trading Buy, TP: RM4.08). INARI has recently staged a breakout from its ‘Flag’ chart pattern with above-average trading volume. Underlying outlook is positive as the share price trades above all its SMA level. MACD and Stochastic have staged a crossover, with the latter hooking upwards to imply a reversal play. Besides, the uptick in RSI also suggests that buying momentum is piling up to reinforce the bullish view. We reckon that follow through buying interest will propel the share price towards retesting its previous high level of RM3.85(R1) and possibly rally towards our ‘Flagpole’ measurement objective of RM4.08 (R2) next.

· BJAUTO (Not Rated). BJAUTO has been trading south-bound over the past few months, as it looks to end its downwards trading pattern. Yesterday, the share price surged 7.0 sen (3.32%) to close at RM2.18. Stochastic indicator has staged a crossover to reverse from its downtrend, suggesting a potential rebound play. Both MACD and RSI are also trending up to showcase the stronger buying momentum. All told, these signs suggest that the share price may have a chance to end its underlying downtrend soon. However, the share price must swiftly recapture the RM2.33 (R2) level (coincide with its 200-day SMA level) to reinforce this anticipation.

Source: Kenanga Research - 4 Nov 2015