PENTA (Not Rated). Yesterday, PENTA surged 4.0 sen (5.9%) to stage a technical breakout away from its resistance-turned-support level of RM0.70 (S1) to settle at RM0.72. On the back of strong trading volume, MACD histogram has also staged a bullish crossover in tandem with an uptick in the RSI indicator. The underlying outlook is looking positive from here but could be hindered by the clusters of resistance at the RM0.73 (R1)/RM0.77 (R2). Besides, we also observe that the share price has a tendency to consolidate after a strong volume rise as per historical trends (circled on chart). Hence, we advocate investors to look out for a retracement towards RM0.70 (S1) before entering the stock. Next support level is seen at RM0.66 (S2).

PWROOT (Not Rated). PWROOT has been on a downtrend trading pattern since reaching a high level of RM2.99 back in 17 Nov 2015. Yesterday, the share price had confirmed its bullish reversal pattern by surging 18.0 sen (8.2%) to break out from its key resistance-turnedsupport level of RM2.26 to close at RM2.37, above its 20-day and 100-day SMA levels. The bullish crossover of the MACD histogram as well as strong hook up in RSI is reinforcing the bullish reversal play. From here, we reckon that follow-through buying interest could lead the share price to trend further up towards RM2.46 (R1) and possibly RM2.63 (R2) in the near-to-mid term. From a conservative point of view, we advocate interested investors to take note of the recent two-day strong surge of the share price which could be deemed overdone (as seen in the near overbought of the RSI). Hence, we do not discount the possibility of some consolidation to neutralise the aforesaid overdone situation. Supports are located at RM2.26 (S1) followed by RM2.00 (S2).

Source: Kenanga Research - 2 Jun 2016