ANZO (Trading Buy; TP: RM0.815, SL: RM0.465). ANZO saw its share price gaining 3.0 sen (5.9%) at RM0.535. The share price had previously been on a sideways trend for a year, before breaking out at RM0.27 in end-February. The share price subsequently rallied to as high as RM0.585 barely a month later before entering into a healthy sideways consolidation phase. That said, the share price finally broke out again to confirm a “Bullish Pennant” pattern. Known by chartists as a mid-point between full runs, the Pennant breakout signals that ANZO is poised to resume its bullish move towards the measurement objective of RM0.83. In between, key resistance levels to look out for include RM0.585 (R1) and RM0.68 (R2). Downside appears limited with a solid level of support at RM0.48 (S1), although a move below this level would be highly negative with next support being RM0.40 (S2).

TADMAX (Not Rated). TADMAX’s share price rose 1.5 sen (3.2%) to RM0.485 with 10.3m shares changing hands yesterday. On the daily chart, TADMAX has been on a positive trend since the start of the year. In fact, a “Rounding Bottom” pattern appears to have taken shape, which reflects the gradual transition from a bearish trend in the 2nd half of last year to a bullish one since January. More recently this past month, the share price consolidated back to the 20-day SMA support. However, with yesterday’s bullish move, coupled with a MACDSignal line crossover, the balance of evidence suggest that TADMAX is now poised to resume its incline. From here, it is expected that its share price to retest last month’s high of RM0.51 (R1). Should this level be taken out next, further gains would then be eyed towards the August high of RM0.545 (R2) next. Downside support is present at RM0.465 (S1) and RM0.44 (S2) below.

Source: Kenanga Research - 13 Apr 2017