INARI (Trading Buy, TP: RM2.32, SL: RM1.80)

• INARI spiked up 22.0sen (8.12%) yesterday to end at RM2.93 (post-ex: RM1.95) on strong trading volume. Note that INARI has a bonus issue with its ex-date being today, on the basis of 1 bonus for every 2 existing share. Prices mentioned here will thus be post-ex.
• Since early January, the share had been on a downtrend, reaching a low of RM1.59 a week ago.
• We believe yesterday’s move signals a breakout from its downtrend as the RM1.93 resistance level was taken out.
• A meaningful uptick in the MACD line and the long white-candlestick formed indicates buying momentum is increasing.
• Expect follow through buying that may see the share head further towards RM2.07 (R1) or even RM2.25 (R2). Conversely, a dip to its resistance-turned-support level at RM1.93 (S1) is a good entry point for investors while a further plunge to RM1.79 (S2) is deemed highly negative.

KERJAYA (Not Rated)

• KERJAYA jumped 19.0 sen to end at RM1.58 (+13.7%). This was accompanied by 1.6m shares being traded – double the average volume of 0.8m shares.
• Yesterday’s “Opening Marubozu” candlestick displayed bullishness as it erased gradual losses experienced over the past one month.
• Momentum indicators shown signals of possible reversal, i.e. bullish MACD divergence.
• The share is in the midst of testing resistance at 1.60 (R1). A breakout from R1 could pave a further rally towards RM1.73 (R2) and RM1.96 (R3) further up.
• Conversely, downside support can be identified at RM1.47 (S1) and RM1.36 (S2).

Source: Kenanga Research - 11 Apr 2018