SASBADI (Trading Buy, TP: RM0.680, SL: RM0.285)

• SASBADI jumped 3.0 sen (8.0%) to end at RM0.405 with the support of strong trading volume of 4.5m – greater than average volume of 3.1m shares.
• The share is testing its downtrend line, though the series of long white candlesticks formed within the past few days is suggestive that rebound play is likely to happen.
• Momentum indicators displayed signs of reversal i.e. bullish MACD divergence coupled with stronger RSI, which possibly marks shift of investors’ sentiment.
• Overall, RM0.300 level (S1) appears to be a strong support, therefore we take comfort to call a TRADING BUY with our TP at RM0.680. Meanwhile, expect intermediate resistant at RM0.480 (R1) and RM0.600 (R2) next.

PRESBHD (Not Rated)

• PRESBHD went up 15.0 sen (10.2%) to close at RM1.62 on higher-than-average trading volume.
• The share gapped up upon opening, possibly on investors’ optimism towards news that PRESBHD had fulfilled the conditions in the concession agreement with the government of Malaysia to implement an integrated immigration system.
• Even though it has been on a downtrend since July 2017, the share is possibly showing signs of a potential breakout. The share is currently trading above its key SMAs while the MACD has crossed above the Signal line.
• Expect the share to retest its immediate resistance at RM1.65 (R1). A decisive break above R1 will confirm the reversal of the downtrend and may see it head towards RM1.80 (R2)
• Should it fail to break above R1, downside supports can be identified at RM1.48 (S1) and RM1.20 (S2).

Source: Kenanga Research - 12 Apr 2018