PANTECH (Not Rated)

• PANTECH rose 1.5 sen (2.3%) RM0.655 after a local research house upgraded its recommendation to BUY with a target price of RM0.84.
• Importantly, yesterday’s move signals a rebound from its key uptrend line, and this was supported by a meaningful uptick on the Stochastic indicator as well as a spike in trading column.
• From here, it is expected that the share price to be upside biased and probably to retest last month’s high of RM0.71 (R1) en route to RM0.74 (R2).
• Any weakness is likely to be limited to RM0.63 (S1) although a break below would be highly negative. .

MFLOUR (Not Rated)

• MFLOUR gained 9.0 sen (4.3%) yesterday to close at RM2.19.
• Consequently, the share price broke out of its RM2.07-RM2.16 congestion zone, potentially signalling a resumption of its 3- month uptrend.
• Overall, key momentum indicators such as the MACD and RSI are bullish and a “golden crossover” between the 50-day and 100-day key SMAs are supportive of the positive technical outlook.
• From here, we expect a clear path towards resistance levels of RM2.23 (R1) and RM2.46 (R2).
• Immediate support level can be found at RM2.08 (S1) and further below at RM2.00 (S2)

Source: Kenanga Research - 2 Feb 2018