PENTA (Not Rated)

• PENTA surged 34.0 sen (16.4%) to close at RM2.41, backed by higher than average trading volume.
• Importantly, yesterday’s move signals a breakout from its key downtrend line, with price closing above all key SMAs.
• Momentum indicators are turning positive as MACD and RSI tick higher.
• Expect follow-through buying towards RM2.64 (R1). Should R1 is taken out; the next targeted resistance is RM3.12 (R2).
• Conversely, support levels can be found at RM2.10 (S1) and RM1.86 (S2).

BAT (Not Rated)

• BAT closed at RM28.42 yesterday with strong trading volume of 2.06m.
• Yesterday’s move marked a first-day breakout after a long downtrend, with the share closing above its short and mid-term SMAs of 20 and 50-day, potentially signalling a bottoming-out. Technical outlook is further bolstered by positive upticks in key momentum indicators.
• From here, expect BAT to move towards RM31.00 (R1) and RM33.60 (R2) further up.
• Immediate support is identified at RM22.62 (S1).

Source: Kenanga Research - 15 May 2018