INARI (Not Rated). Yesterday, INARI share price rose 12.0 sen (3.58%) to close higher at RM3.47 on the back of increased trading volume. The share price has recently consolidated after reaching a high of RM3.96 during the start of the year. We observe that a short-term rebound play could be on the cards, given that the Stochastic is emerging strongly from its oversold territory (showing resemblance of the August 2015 rally as circled). Besides, an uptick in RSI is also suggesting that buying interest is returning to the stock, while MACD is looking to stage a bullish crossover again. If follow-through buying interest persists, we reckon that the share price could look to repeat the same feat in August 2015 to retest its previous high level of RM3.96 in the near-term.

PADINI (Take Profit @ RM1.98). Earlier last month, we recommended a Trading Buy on PADINI when the share price broke out of a “Bullish Flag” pattern (report dated 17th Dec 2015 @ RM1.88). While the share price had subsequently climbed to an intraday high of RM2.04 (+8.5%), PADINI has not been able to close above the RM2.00 resistance/psychological level despite two separate attempts. Yesterday, the share price closed at RM1.98, up by 7.0 sen for the day. At this juncture, we suggest that traders lock in prior gains against the backdrop of the MACD which is signaling a loss of momentum. Traders may revisit the stock only when the RM2.00 key level is taken out in a decisive manner. Immediate resistance levels are RM2.00 (R1) and RM2.13 (R2) while support levels are RM1.80 (S1) and RM1.68 (S2).

Source: Kenanga Research - 27 Jan 2016