SENDAI (Not Rated)

• After Wednesday’s knee-jerk sell-down amidst widespread poor market sentiment, SENDAI recovered and climbed 7.5 sen (8.82%) last night to end at RM0.925, in tandem with an overall market recovery.
• The share had broken out from the downtrend in late March, which was then followed by a string of white-bodied candlestick formed backed by high volumes, indicating gradually strong buying interest from the market.
• Overall technical outlook is positive despite Wednesday’s sell-down as the share is currently leading key SMAs upward coupled with an uptrend in the MACD line.
• Expect follow-through buying to bring the share closer towards RM1.00 (R1) and RM1.12 further up. Meanwhile, support levels are identified at RM0.850 (S1) and RM0.680 (S2).

AEON (Not Rated)

• AEON advanced 6.0 sen to RM1.83 (+3.4%) yesterday, accompanied by trading volume of 2.8m – above average volume of 1.6m.
• With yesterday long white-bodied candlestick, the stock appeared to have broken out of its month-long consolidation phase, possibly suggesting a continuation of its prior short rally.
• Technical outlook is seemingly positive with the “Golden Cross” among key SMAs still intact, while momentum indicators remain in a positive territory.
• Expect follow-through buying towards RM2.04 (R1) and potentially RM2.22 (R2), coinciding with our “Flagpole” measurement objective
• Conversely, immediate support can be found at RM1.73 (S1), with a break below to be highly negative, potentially triggering a capitulation towards RM1.45 (S2).

Source: Kenanga Research - 6 Apr 2018