BAT (Not Rated)

• BAT spiked up RM1.98 (8.71%) to end at RM24.72.
• Despite yesterday’s gain, overall technical outlook is still bearish with the downtrend still in place and momentum indicators still do not show any strong sign of an affirmative reversal.
• However, we believe that there might be some follow-through buying activities over the next few days as yesterday’s long white candlestick with a short upper shadow was backed by exceptionally high trading volume.
• Keen investors seeking to capitalise on the follow-through momentum can set a target at RM27.80 (R1) and RM31.00 (R2).
• Support, on the other hand, can be identified at RM22.62 (S1).

ALLIANZ (Not Rated)

• ALLIANZ caught our attention after rallying 10.0% to close at RM11.70 yesterday. It was accompanied by exceptional trading volume of 533k, which is 5x greater than its 20-day average volume of 98k.
• Yesterday's “Marubozu” candlestick confirms the earlier "Hammer" reversal candlestick, to kick off a near-term recovery.
• RSI that has broken above the 50.0 level and MACD-Signal line cross over display improvement in technical outlook.
• Expect a rebound toward RM12.40 (R1) and RM13.00 (R2) further up.
• Conversely, support level can be found at RM10.44 (S1) though a break below is deemed highly negative, potentially trigger capitulation towards RM9.60 (S2).

Source: Kenanga Research - 20 Apr 2018